SNAPSHOT – Q3 2025

The overall office market vacancy rate climbed to 19% as tenants have uncertainty about long-term occupancy needs. The Greater Airport Area was the most active area within the Orange County office market, accounting for 58% of leasing activity during the past quarter. The office market has been bolstered by office assets being repositioned as multifamily and industrial property. Since the beginning of 2023, roughly 2 million square feet of office product has been removed, with an additional 5 million slated for demolition in the coming years.

On the industrial side, vacancy rose for the 11th consecutive quarter. The rate increased due to a combination of both tenant move-outs and the delivery of new construction that was completed without pre-commitments. New construction is limited, with 17 buildings totaling 2 million square feet underway, with four preleased.

Data provided by Cushman and Wakefield, a global commercial real estate services firm. The company tracks commercial real estate market activity including supply, demand and pricing trends.