O.C. office-space market heats up, report shows

Rent has risen nearly 13% in past year; John Wayne Airport area posts vacancy rate of 8%.Office space in Orange County is a hot commodity, according to a market forecast being released today.

In the area surrounding John Wayne Airport, commercial rents have risen nearly 13% in the past year, according to the data from the 2005 Casden Office and Industrial Market Forecast for Southern California released by USC’s Lusk Center for Real Estate.

For the first time in four years, the airport district posted single-digit vacancy rates -- 8%, the study shows. Vacancy rates are dropping and commercial rents are rising throughout Southern California, according to the report.

Delores Conway, director of the Casden Forecast, said steady job growth, a lively tourism industry and a solid real estate market are among the reasons for higher office occupancy.

Conway said the Orange County job market is particularly strong, and that businesses are purchasing more office space here in preparation for expansion.

“We’re seeing businesses starting to lease office space rather than wait,” she said. “Businesses are hiring and making future investments.”

Conway referred to the area around the airport as the “central business district” in Orange County.

“It’s popular because of the proximity to the airport as well as areas further north,” she said.

The Casden forecast analyzes economic data on rents, vacancies, transactions and employment for the Los Angeles County, Orange County and Inland Empire office and industrial markets.