Orange County: Office tenants are migrating to the Airport Area, primarily in low-rise buildings
February 07, 2019
- Excluding renewals, over half of 2018 leasing activity occurred in the Airport Area, based on deals 25,000 square feet and greater. Looking at net new, expansion, and relocation leases, there was a total of 1.7 million square feet of leasing activity with 965,000 square feet in the Airport Area, mostly in Irvine. There were only two deals signed north of the 22 Freeway.
- Of the buildings tenants are leasing, 75 percent are low-rise, 63 percent occurred in Class B, and 60 percent were signed at newly developed or repositioned properties.
- While these deals included companies from a diverse set of industries including healthcare, education, financial services, government, and real estate, half of the leasing volume involved tech and life science firms.
- Micromarkets that attracted the greatest amount of significant new leasing activity are Irvine (621,000 square feet (s.f.)), Aliso Viejo (255,000 s.f.), South Santa Ana (214,000 s.f.), and Irvine Spectrum (188,000 s.f.).
Source: JLL Research