2016 could be a big year for both. Yes, the Orange County office market is something it hasn’t been in a while: optimistic.
Back in those hard-to-remember 2000s, OC was the country's hub of the subprime lending industry. That collapsed, leaving a lot of vacant space, UCLA Anderson Forecast senior economic Jerry Nickelsburg explains. Fast forward to today: That space is being absorbed rapidly "because Orange County is growing once again--at a more rapid rate than the rest of the US,” he says. Jerry also says that developers surveyed by the UCLA Anderson Forecast look forward to the OC market tightening enough by 2016, with rents and occupancies up, to increase the amount of space available. (For Jerry's full video, see here.)
That sounds like a prospective wave of development in a few short years to us. (Pictured: the collaborative office space of 2020 isn't going to look quite like this.) Allen Matkins attorney Tony Natis adds that intelligent buyers are once again looking for office properties to buy (and there’s no better sign of optimism than investors voting with their money). For more on the SoCal real estate market, see the Allen Matkins Minute below.
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