Slowdown in office leasing activity seen in Orange County at year-end

In the fourth quarter 2022, the Orange County office market ended the year with just 1.5 million square feet (msf) of leasing volume reported. This was down 15% from 1.8 msfreported in the previous quarter, as well as down 19% from 1.9 msfreported a year ago. In comparison, full year 2022 total leasing activity of 6.5 msfwas up slightly from 6.3 msfreported in 2021 but still down from 7.2 msfrecorded in 2019 before the COVID-19 pandemic. With uncertain economic headwinds next year and hybrid workplace styles here to stay for now, occupiers are reevaluating their office space footprints to best fit their needs and future business plans. This has led to many tenants downsizing square footages while landlords remain aggressive at preserving occupancy.

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