Avison Young in City
Avison Young entered the Orange County market in 2012, expanding the company’s Southern California presence into the heart of a thriving economy. Representing more than three million square feet of space in 2016 alone, the Orange County office of Avison Young continues to achieve client success offering services geared toward users and occupiers, as well as owners and investors. Services include tenant representation, consulting and advisory, landlord representation, capital markets, investment sales, and project & development services.
Orange County is the third most populous county in California, following closely behind Los Angeles and San Diego counties. Encompassing more than 948 square miles of both land and water, Orange County is home to more than three million people and ranks as the sixth-largest county in the United States. Thirty-four incorporated cities comprise Orange County, of which Santa Ana is the county seat. With most of its cities founded and incorporated in the past century, Orange County is the newer region with many developing communities and a diverse ethnic base.
Located directly south of Los Angeles County, Orange County is considered one of the most advantageous economic locations in the world, home to major businesses, start-up companies, technology, fashion, culture, higher-education, sports, tourism and world-renowned entertainment. Five Fortune 500 companies are headquartered in Orange County, with many on CNN Money’s “Fastest Growing Companies” list. While small businesses are a key component of the business landscape, Orange County is also a hub of international activity. Collectively, Orange County is the nation’s 15th top-producing economy in the U.S. with a gross domestic product (GDP) of more than $197 billion, ranking the area 45th in the world.
Orange County is home to University of California-Irvine, and California State University -Fullerton, along with more than thirty private four-year institutions. Some 37% of residents aged 25-plus hold a four-year bachelor’s degree or higher.
World-renowned attractions such as Disneyland, Knotts Berry Farm, the Honda Center, Angels Stadium and the many coastal beaches of Orange County attracted more than 23 million travelers in 2016 contributing to $8.1 billion in visitor spending and $550 million in tax dollars to the county annually.
Irvine ranked fourteenth on CNN Money’s “50 Best Places to Live” list in 2014. Overall, residents of Orange County enjoy a high quality of life marked by a strong home ownership base, above-state-level household incomes, the lowest crime rate in the nation, and strong scores in well-being indexes.
Orange County has an overall office market of 120 million square feet (msf) across five geographical sub-sectors – North Orange County, Central Orange County, West Orange County, South Orange County and Airport Area. The region has experienced positive net absorption with growing amounts of leasing activity due to favorable population growth. Orange County is presumed to be a landlord’s market as availability has decreased and new office product development speculation remains low. While some high-technology companies have been downsizing at current locations, zero threat to the Orange County economy is anticipated as the class A, trophy assets within the office market remain favorable and investor demand continues to rise.
Orange County is home to major retail centers, including South Coast Plaza, Fashion Island, Irvine Spectrum, The Source, and Pacific City. Favorable climates, ideal geography and a strong spending core have long characterized the region’s retail landscape. Plans for new retail development in Orange County are muted, with few projects occurring in the more non-conventional product types such as mixed-use and outlet center categories. Changes in the job market, real gross domestic product (GDP) growth, housing affordability and rental rates may affect consumer attitudes; however, demand remains high, as consumer spending habits continue land retailers on solid ground as the retail environment tightens.
The 218 million square feet of industrial market base in Orange County is geographically positioned in the heart of a booming economy, vast population growth and easy proximity to Southern California ports. The demand for high-quality industrial space continues to rise, as quality space options are becoming increasingly rare, creating leverage for landlords. Industrial market lease rates continue to climb, with vacancy rates among the tightest in the nation. Experiencing market pressures in the Airport Area, South and West Counties of Orange County, landlords may be looking to convert existing industrial space to creative offices, or flip them to be redeveloped as multi-family opportunities. Continuing growth of Orange County’s economy may force developers to compete at a higher price for limited land.