Jeffrey Ingham, Senior Managing Director in our Orange County office shared his thoughts with GlobeSt.com on the slow yet consistent recovery in the office sector. OC’s class-A market vacancy is currently 16.1%.
The housing and mortgage bubble fueled 2007 and 2008’s overbuilding . More than 3 million square feet of inventory was delivered to market as the economy took a turn for the worse. A large amount of that unabsorbed space was generated by the mortgage industry meltdown including Ameriquest’s 2 million square feet.
Central County really got hit hard by the mortgage pullout—every major high-rise had a mortgage component in it. Current market vacancy could have been as low as 9.8% without this excess inventory, not much higher than 2006’s 8.3%.
“We do see a light at the end of the tunnel. We’re seeing a lot of recovery and expansion, and migration from outside the market.”
Click here to read the complete article on GlobeSt.com: Office Recovery Sluggish from Overbuilding