Step Into My Office: Orange County’s Tale of Two Markets

<p>Orange County’s office market is moving from correction to recalibration. While the sector is still navigating the effects of right-sizing and post-pandemic occupancy shifts, <a href="https://www.cbre.com/insights/figures/orange-county-office-figures-q2-2026" target="_blank" rel="noreferrer noopener nofollow">CBRE’s latest report</a> points to a market that is gradually finding its footing. With vacancy remaining relatively steady at 13.3 percent and negative net absorption narrowing compared to the first quarter, Orange County appears to be moving closer to balance.</p><p>In this episode of <em>Step Into My Office</em>, CPE’s Olivia Bunescu talks with Allison Kelly, senior vice president at CBRE, about what is driving Orange County’s office market now. Kelly discusses stabilizing fundamentals, the Greater Airport Area, the split between long-term owners and new high-net-worth buyers, institutional capital’s hesitation and why Class A assets continue to outperform older commodity buildings.</p><p><br></p><p>For Kelly, Orange County’s next phase will be defined less by a broad office rebound and more by how each property is positioned within a market where stability, redevelopment and flight to quality are all happening at once.</p><p><br></p><p>Here’s what they discussed:</p><ul><li>Orange County’s stabilizing office fundamentals (01:30)</li><li>The market’s recovery is rooted in occupier diversity (03:03)</li><li>Which tenants are driving demand? (05:05)</li><li>From negative absorption to a positive trajectory (07:39)</li><li>Submarkets leading leasing momentum (08:34)</li><li>A tale of two ownership structures (10:44)</li><li>Why institutional capital remains hesitant on office (15:10)</li><li>Spec suites and move-in-ready space gain traction (17:22)</li><li>Class A assets outperform, as older buildings seek new uses (20:35)</li><li>What’s on top of the list for occupiers? (22:27)</li><li>Stability, growth and redevelopment ahead (25:16)</li></ul>