GlobeSt.com: What new opportunities do you see in the market now?

Thomson: We see greater opportunities with the acceleration of office-building sales here in Orange County as this market becomes a core office-market destination for both private and institutional investors. Those are our clients. This investment activity is a direct result of continual office fundamental improvement as demonstrated by positive absorption trends, employment growth and industry-sector balance that, unlike the last peak, will be pushing vacancy rates into single digits in the next quarter or two. Fewer big blocks of vacancy will have both tenants and investors positioning for control and will lead rental growth in 2017.

GlobeSt.com: Some are saying renewed optimism is one of the factors that is extending the current real estate cycle. Would you agree? Why or why not?

Nugent: I would agree that optimism is a big factor in extending the real estate cycle and, more importantly, we believe that there is a lot to be optimistic about. Compared to previous cycles, we do not believe we are overbuilt. While there is the new construction, it is much more conservative in terms of amount and in line with the demand we are seeing.

GlobeSt.com: What else should our readers know about your view of the market as we head into the new year?

Thomson: The market will keenly watch how well new ground-up developments such as FLIGHT, Boardwalk and Irvine Co.'s 400 Spectrum and NextGen properties perform. The market will also be keeping an eye on investor acquired former owner/user projects that include: Steelwave/Goldman Sachs' Emulex campus reposition to Hive in Costa Mesa and Broadcom's investor sale of the Bridges in Spectrum. The performance of these projects will be a barometer for tenants' appetite for new construction-cost-driven rents in Orange County. Stay tuned.

IRVINE, CA—Newmark Grubb Knight Frank recently recruited four of Orange County's top tenant- and landlord-representation brokers—Jay Nugent, George Thomson, Greg Puccinelli and James Estrada—who have come on board as senior managing directors with the firm's Orange County. The four brokers, formerly SVPs with JLL, have serviced some of the nation's leading institutional players including Torchlight, TIAA, Goldman Sachs, Blackstone/EOP, Steelwave, Parallel Capital Partners, Clarion Partners, Barrons, LNR, CT Realty and Colony Capital. In addition, Naomi Rizkowsky joins NGKF from JLL, where she was an associate focused on class-A and -B agency leasing transactions in Orange County.

We spoke with Nugent and Thomson about the move and new opportunities in the market currently.

GlobeSt.com: What attracted you to Newmark Grubb Knight Frank?

Nugent: There were many things that attracted us to this very strong national platform. Joining NGKF provides us with a strategic opportunity to align with a best-in-class and growing capital-markets team. There is a great synergy between our client relationships and the capital markets team here at NGKF. We're really excited to build our market share with NGKF and leverage the strength of this firm's growing national platform.

GlobeSt.com: What new opportunities do you see in the market now?

Thomson: We see greater opportunities with the acceleration of office-building sales here in Orange County as this market becomes a core office-market destination for both private and institutional investors. Those are our clients. This investment activity is a direct result of continual office fundamental improvement as demonstrated by positive absorption trends, employment growth and industry-sector balance that, unlike the last peak, will be pushing vacancy rates into single digits in the next quarter or two. Fewer big blocks of vacancy will have both tenants and investors positioning for control and will lead rental growth in 2017.

GlobeSt.com: Some are saying renewed optimism is one of the factors that is extending the current real estate cycle. Would you agree? Why or why not?

Nugent: I would agree that optimism is a big factor in extending the real estate cycle and, more importantly, we believe that there is a lot to be optimistic about. Compared to previous cycles, we do not believe we are overbuilt. While there is the new construction, it is much more conservative in terms of amount and in line with the demand we are seeing.

GlobeSt.com: What else should our readers know about your view of the market as we head into the new year?

Thomson: The market will keenly watch how well new ground-up developments such as FLIGHT, Boardwalk and Irvine Co.'s 400 Spectrum and NextGen properties perform. The market will also be keeping an eye on investor acquired former owner/user projects that include: Steelwave/Goldman Sachs' Emulex campus reposition to Hive in Costa Mesa and Broadcom's investor sale of the Bridges in Spectrum. The performance of these projects will be a barometer for tenants' appetite for new construction-cost-driven rents in Orange County. Stay tuned.