Availability declines as construction activity slows
Overall availability in Orange County ended Q3 at 18.0%, a 110 basis-point decrease year over year, due in part to steady demand coupled with a lack of new supply. The decline in Class A was less pronounced, dropping 50 basis points over the year to 20.4% as tenants are capitalizing on Class B options. Current construction activity is down 53.0% year over year with construction costs climbing north of $600 per square foot (psf). As demand shifts from Class A high-rise space to campus-style and amenity-rich locations, Orange County Class A asking rates are beginning to flatten, closing out Q3 at $3.29 psf. Overall asking rates currently sit at $3.00 psf, a 2.7% increase year over year.