Orange County Office Landlords Regain the Upper Hand

A swinging pendulum is moving back toward office landlords in Orange County.

As such, Class A office absorbed 840,000 SF in 2026, while Class B gave back more than 570,000 SF.

"That gap tells you exactly where companies want to be," JLL Vice President Ben Halverson told GlobeSt.com.

Only one office project is under construction in the county (OC V!be), and more older buildings are being converted to other uses, putting pressure on companies hunting for the best space, Halverson said.

"And it isn't getting any easier," he added. "My advice to any company with a lease rolling in the next two to three years is to start the conversation now. The leverage you have today erodes by the month and will be gone by 2028."

Orange County office vacancy stood at 15.4% in Q3 2026, down from a peak of 16.7% in 2024, according to JLL's Q3 Orange County Office report. The average asking rent reached $3.02 per square foot, up from $2.90 per square foot at year-end 2025.

In Q3 2026, Orange County recorded 1,546,685 square feet of office leasing activity, including several significant large-lease transactions that demonstrated continued tenant demand.

The South County office market drove positive OC office net absorption, recording 86,107 square feet, with the Irvine Spectrum submarket posting 133,115 square feet.

Taco Bell Inks Area's Top Deal in Five Years 

The most notable deal was Taco Bell's 254,162-square-foot lease at Alton HQ, the largest office lease signed in Orange County in five years, with full occupancy planned for 2028; this will relocate them from their current HQ at 1 Glen Bell Way in Irvine.

Additionally, Envista Holdings Corporation, a medical device manufacturer, completed a three-building lease totaling 101,800 square feet at 15360-15370 Barranca Parkway and 100 Technology Drive.

An aerospace company also signed leases totaling 173,057 square feet across two Airport Area submarket locations: 70,640 square feet at 600 Anton and 102,417 square feet at 4000 MacArthur.

These occupancies in Orange County demonstrate the market's attraction for large-scale corporate requirements across diversified industry sectors.

No new completions have occurred in 2026 to date. The sole project under development, The Weave @ OC V!BE (168,137 square feet), is expected to deliver in Q4 2026 with approximately 23.1% pre-leased. Ongoing office-to-alternative-use conversions continue to reduce available supply.

With YTD absorption remaining positive and no new completions expected until Q4 2026, a healthy tenant demand pipeline, combined with no new supply, points to continued reductions in office market vacancy.