Sublease & Disposition Proposal for Vyaire
Office Q1 2021 ORANGE CO
TRENDS
MARKET OVERVIEW
EC Afte rest ‘Ora can beg
12-Mo. Forecast
YoY Chg
15.3% Vacancy Rate -1.4M Net Absorption, SF $2.91 Asking Rent, PSF
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ORANGE COUNTY
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After a tumultuous year due to the coronavirus, Orange County is gradually getting back to business. Since the beginning of the year, restrictions on residents and businesses has began to ease. As of the end of March 2021, Orange County has entered a less restrictive ‘Orange’ tier which allows for more businesses to reopen. Retail stores will now have no limits, restaurants and most other indoor activities can expand to 50% capacity, and offices can reopen with modifications. Total employment in Orange County slowly rebounded at the beginning of 2021, increasing by 130,000 jobs since peak unemployment in May 2020. The most recent data shows in February a drop in the unemployment rate to 6.8%, down from 7.3% in January and 14.7% from the peak in May 2020. As restoring confidence to return to the workplace will take time, many companies are still in a wait-and-see mode.
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Since March 2020, a large influx of sublease space was quickly added to the market as many companies no longer found practicality in office space with work from home mandates. The momentum has since then slowed down. Available sublease space has decreased 4.0% or 115,789 sf since the peak in November with 3.2 million square feet recorded.
Most sublease availabilities that have been listed remain heavily concentrated within the Greater Airport Area and Irvine Spectrum.
(Overall, All PropertyClasses)
ECONOMIC INDICATORS Q1 2021
12-Mo. Forecast
YoY Chg
1.5M Orange County Employment
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6.8% Orange County Unemployment Rate 6.0% U.S. Unemployment Rate
SP
Tenant demand for space continues to dwindle. Leasing volume remained low throughout the first quarter with new leasing totaling 1.2 million square feet, which is down 54.6% year over year.
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Source: BLS *U.S unemployment rate based on March reports
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Thousands
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