IRVINE, CA—A growing number of Orange County companies are outsourcing employee hiring and verification processing, which has caused the demand for these services to rise significantly, JLL's senior research analyst Jared Dienstag tells GlobeSt.com. With a recent company report showing that employment-services jobs have led job growth in Orange County since 2009, GlobeSt.com spoke exclusively with Dienstag about why this segment is so strong and how it is impacting the office sector.

GlobeSt.com: What is driving employment-services job growth in Orange County?

Dienstag: With many companies located in Orange County recording strong growth, firms need to increase employee count in order to support their business lines. A growing number of companies are outsourcing employee hiring and verification processing which has caused the demand for these services to rise significantly. Firms that offer human-resource and personnel-management services are also expanding at a fast pace. These organizations work with payroll, accounting and benefits administration.

GlobeSt.com: In what ways is this growth affecting the office sector in that market?

Dienstag: The fact that employment services is experiencing significant growth is a great sign for the economy and office market. This category is expanding because companies are growing and becoming increasingly busy and are therefore electing to outsource these services. This growth is positively impacting the Orange County office market. Not only are companies leasing more office space as a result of outgrowing their current space, but many firms are expanding their square footage based on future growth projections. This is causing office vacancy to decline and rents to increase. In 2010, vacancy was 20.2%, and now it stands at 11.7%. Vacancy has not been at this level since 2007.

GlobeSt.com: Where do you see Orange County job growth headed as we end the year and move into 2016?

Dienstag: Orange County job growth is expected to continue to outpace California and the nation. Before the recession, the Orange County economy was largely dependent on the mortgage industry and has dug itself out on the heels of a more diversified economic base, led by the healthcare and technology fields, which will carry into 2016. Orange County has a highly educated and talented labor pool, which is very attractive to companies, including a growing number of start-ups.

GlobeSt.com: What else should our readers know about job growth as it relates to office users?

Dienstag: Although Orange County's cost of living is higher than much of the country, the cost of running a business (taking into account real estate and wages) is lower than many other California markets. This is not only significant for existing establishments, but is a strong draw for new companies to start their businesses in Orange County, as opposed to other higher-priced markets in California. Because a significant amount of companies are growing their real estate footprints in Orange County, the office market should remain tight as we head into 2016, with continued growth in occupancy and rents.