Unwillingness to Sell Hinders Trading

IRVINE, CA-Sluggish office-investment metrics in Orange County do not reflect lack of appetite from buyers, but reluctance on the part of sellers to part with their assets, reports Voit Real Estate Services. The market has not approached the liquidity it enjoyed form 2003 through 2007 in dollar terms, and this liquidity may not return any time soon, according to the firm.

As GlobeSt.com reported earlier this week, Orange County office leasing velocity in all size ranges has fallen to an average of about 3.2 million square feet per quarter over the past year, down from about 3.6 million square feet per quarter in 2011, according to Voit. This trend will likely slow absorption in the near term. Also, the amount of sublease space available has also trended up over the past four quarters after steadily declining since 2008, which suggests that gray space may be on the rise, tempering the need for local tenants to lease more space.