Figures

Orange County Medical Outpatient Figures Q1 2026

April 30, 2026 5 Minute Read

Asking lease rates increased from $2.86 FSG to $2.94 as new, Class A medical office space was listed on the market and drove average asking rates higher.
As of early 2026, healthcare employment reached 200,000 jobs, marking a quarter-over-quarter increase of 17,200 jobs and a year-over-year growth of 12.4%.
The vacancy rate increased 80 basis points (bps) to 8.3% and the availability rate increased 10 bps quarter-over-quarter to 11.5%. Ongoing tenant move-outs at the sub-10,000 sq. ft. space were a catalyst of the vacancy increase as demand waned due to ongoing economic uncertainty affecting occupiers’ willingness to make long-term commitments.
Despite the increase in consumer healthcare spending in recent years, the OC market showed continued negative total net absorption - ending at 21,594 sq. ft. of space becoming newly vacant in Q1 2026. The negative absorption was caused by the continuation of the “flight-to-quality” trend, where older assets with limited amenities continued to lose occupants.