CoStar - January 31, 2007
by CoStar Research

Following a trend from the past 2 years, developers are expected to deliver more office space in the Orange County region in 2007. According to CoStar Group's 2006 Year-End Office Report, approximately 5,042,778 square feet of new office space is expected to reach completion this year, that's 3,432,173 square feet more than delivered in 2006 and the first increase in the amount of new office space expected to deliver in the region since last year.

During the fourth quarter 2006, 10 buildings totaling 316,197 square feet were completed in the region. This compares to 6 buildings totaling 260,088 square feet that were completed in the third quarter 2006, 13 buildings totaling 645,885 square feet completed in the second quarter 2006, and 388,435 square feet in 29 buildings completed in the first quarter 2006.

Some of the more notable 2006 deliveries include: Impac Center - Bldg 2, a 200,000-square-foot facility developed by Dorn-Platz & Co. that delivered in third quarter 2006 and is now 100% occupied, and Impac Center - Bldg 1, a 150,000-square-foot building developed by Dorn-Platz & Co. that delivered in second quarter 2006 and is now 100% occupied.

Orange (California) Office Deliveries Office Markets Ranked by 2006 Deliveries

At the end of the fourth quarter, CoStar was tracking 84 office buildings totaling 5,372,611 square feet under construction in the Orange County region. Most of the new space under construction is concentrated in the Airport Area submarket where 3,352,132 square feet is under way and South County with 1,824,692 square feet underway. Approximately 47.3% or 2,541,946 square feet of the currently under-construction space has been preleased.

Among the largest projects underway at the end of fourth quarter 2006 were 3161 Michelson Dr, a 530,380-square-foot building with 57% of its space pre-leased being developed by Maguire Properties, and Opus Center Irvine - Phase III, a 314,075-square-foot building that is 0% pre-leased being developed by Opus/SPI Holdings Corp.

The information in this news report was taken from CoStar's Year-End 2006 Office Market Report, a 40+ page research report containing the most complete and verified statistics available from CoStar for you local market, down to the submarket level. Comprehensive charts, graphs and detailed narrative provide an in-depth, precise picture of absorption, vacancy rates, rental rates, existing inventory and buildings under construction, sales prices, and cap rates.

To learn more about CoStar's Year-End 2006 Office Market Report, call 1-877-726-7827.

###

© 2007 CoStar Realty Information, Inc.