Orange County Is Undergoing a Slow Office Recovery

The Orange County office sector is experiencing a market turnaround as tenants adjust to new workplace strategies. Net absorption was negative at the start of 2024, with South County seeing the most move-outs. Total vacancy rose to 18.1%, above the pre-pandemic average. Leasing activity remains slow, totaling 1.5 million square feet, below historical averages. Average asking rents have stabilized at $2.78 per square foot. Market challenges persist, impacting property values, with gradual improvements expected as leasing activity increases.