ORANGE COUNTY, CA-GlobeSt.com exclusively got a sneak peak atVoit Real Estate ServicesÂ second quarter Orange County market report, which showed that the office market posted 955,283 square feet of positive net absorptionâ€”the most positive net absorption seen in a single quarter since the third quarter of 2005. In addition, the firm says that both vacancy and availability decreased from the previous quarter.
Research-oriented businesses such as IT, defense, medical, and alternative energy will lead the charge of positive absorption over the next few years, explainsÂ Jerry Holdner, VP of market research at the firm. As companies continue to absorb space, vacancy and availability will continue to decline, he says.
The Orange County office market ended the second quarter of 2012 with lower vacancy and availability than prior quarters, which is a positive indication that the office market continues to improve, Holdner explains.Â
And there are strong indications the recovery will continue, he says. â€œEven after this quarterâ€™s substantial positive absorption, we expect to see more positive absorption in Q3 and Q4 of this year.â€
Holder also notes that major companies are currently growing their footprints in the market. â€œThere are already commitments which will affect office absorption in Q3,â€ Holdner says. â€œCoreLogicÂ will move into a 170,000-square-footÂ office spaceÂ in the Spectrum in August of 2012, whileÂ A to Z Development, which occupies 23,000 square feet in the same building, will expand to 82,000 square feet.â€
In terms of vacancy, the report indicates a continued downward trend in the amount of vacant office space being added per quarter, and Voit predicts an overall increase in investment activity in the coming quarters as lenders continue to dispose of distressed assets.
â€œEach of these factors supports sustained improvement in Orange Countyâ€™s office market,â€ says Holdner.Â â€œAs long as job creation continues to increase and consumer confidence stabilizes, we expect this recovery to continue.â€