Orange County Forecast Sees Less Office Demand
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Demand for office space in Orange County will drop for the rest of this year and into the first quarter of 1989, says Matthew Disston, principal of Research Network, a Laguna Hills real estate research firm.
“The vacancy rate is now more than 20%, and the average lease rate has stagnated for the past 18 months at about $1.76 a square foot. Absorption of new office space may drop by as much as 50% the second half of the year compared to the first half.”
He gives three reasons:
1--Tenants will tend to sit tight until the general election is over.
2--There continues to be uncertainty over the economy.
3--Office developers have generally been successful in leasing office space and are getting tougher in negotiating deals with tenants.
“It’s not a buyer’s market and it’s not a seller’s market. It’s a broker’s market,” Disston says.
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