North Orange County Office Figures Q3 2024

Submarket Highlights

• The vacancy rate increased 40 bps from Q2 2024 to 9.2% in Q3 2024 as tenants moved out of mainly Class B space. The availability rate decreased from 17.2% in Q2 2024 to 16.3% in Q3 2024 due to tenants occupying available sublease space.
• Asking rates were slightly lowered to $2.53 FSG per sq. ft. per month quarter-over-quarter, and up $0.12 from $2.41 FSG per sq. ft. per month year-over-year. This was the third straight quarter rates decreased overall in the submarket.
• Class A space remained in line with Q2 2024 at $2.74 FSG per sq. ft per month while Class B space decreased by $0.02 to $2.36 FSG per sq. ft. per month. Class C space also saw a $0.02 decrease to $2.15 FSG per sq. ft. per month.
• Net absorption fell from 56,808 sq. ft. in Q2 2024 to -34,315 sq. ft. in Q3 2024 due to several large tenants moving out of the submarket. United Health Care Services moved out of 27,065 sq. ft. at 18 Centerpointe Dr in La Palma, Honeywell vacated 17,255 sq. ft. at 22 Centerpointe Dr in La Palma, and Burns McDonnell Engineering moved out of 11,496 sq. ft. at 140 S State College Blvd in Brea.