Office availability rate remains above 20% despite increase in leasing activity

In the third quarter 2022, the total availability rate in the Orange County office market increased 90 basis points (bps) from 21.3% reported last quarter to 21.9%. The increase in availability is primarily contributed to subdued demand, an increase in sublease inventory, and sublease space converting to available direct space. With the hybrid workplace here to stay for now, occupiers are reevaluating their office space footprints to best fit their needs and future business plans, which has led to many tenants downsizing square footage. Available sublease space now totals more than 3.7 million square feet (msf), a 12% increase from one year ago. Both occupiers and landlords are continuing to work on innovating ideas to get employees back into the office.

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