Leasing activity remains soft as office space demand is driven by renewals

In the second quarter 2024, Orange County office leasing activity recorded 1.5 million square feet (msf), reflecting a 6.6% increase from the previous quarter but a 2.7% decrease compared to one year ago. Much of this quarter's deal volume originated from the Airport Area and was primarily driven by the Legal Services sector. While Q2 lacked larger deals exceeding 100,000 square feet (sf), deal volume between 40,000-50,000 sf was strongest. Occupiers are continuing to take a wait-and-see approach, leading to a slowdown in office space demand. Many tenants are downsizing or subleasing their existing office space, and landlords are remaining aggressive to preserve occupancy.

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