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Orange County Office Market Forecast for 2014

Posted on May 17, 2014 · Posted in Analysis

The Orange County office market was in a transitional stage of recovery throughout 2013 and 2014 should see the market continue to rebound but even with asking rate growth, deals in specific submarkets will be abundant as new space enters the market.

Throughout 2014 new office and industrial developments will break ground and projects that are non-speculative will be completed. As a testament to the strength of the market for corporate headquarter locations, two large projects will be completed by PIMCO and Hyundai with a possible third speculative project starting in Irvine. The resulting available space that will hit the market will possibly cause an increase in vacancy rates and some submarkets will keep rents flat as space is consolidated.

Office Market Trends

Employment growth and new construction are two of the most closely watched statistics when predicting the future health of commercial real estate and though Orange County’s overall job growth remained somewhat tepid in 2013, the velocity of job creation continues to increase and the county’s 5.6 percent unemployment rate is significantly lower than state and national averages.

The slow but continued progress is now supporting growth within the office and industrial sector and should result in a pickup in overall year-over-year leasing activity. With overall employment numbers improving and the area’s economic growth outpacing a number of other areas within Southern California we should see a stronger commercial real estate market in 2014 which is why business owners need to act now to secure the best possible rates.

Contact Synergy Real Estate Group today and request a free property report from our team of experienced commercial real estate agents. There are some great deals for companies looking for new space and if you have a lease coming up for renewal, we can show you similar options that may have rates significantly lower than what your landlord is proposing.

Let Synergy save you thousands on your next lease and give you peace of mind that you got the best possible deal.

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