Availability ticks up with new deliveries, despite stronger activity
Overall availability in Orange County saw a 90-basis-point increase year over year, ending Q2 2019 at 18.7%. With a significant amount of new product on the market, Class A availability saw a sharper increase, up 160 basis points over the year to 21.2%. 1.1 million square feet (msf) of new product has delivered in the past year. Lincoln Property Group delivered The Flight at Tustin Legacy this quarter (443,489 sf) and an additional 418,751 sf remains currently under construction that is expected to deliver by year’s end. With a flux of Class A office space coming to market, average asking rental rates continue to increase. Overall rental rates increased 2.4% year over year ending the quarter at $3.00 per square foot (psf) per month. Class A asking rents experienced a similar increase, rising 1.7% to $3.31 psf per month.