NEWPORT BEACH, CA—Creative deal making and the ability to reposition obsolete real estate are necessary elements for office buyers entering the highly competitive Orange County marketplace, Savills Studley managing director Brad Schmitt tells GlobeSt.com. With rises in leasing activity and asking rental rates and a decrease in availability from the previous quarter, according to a recent report from the firm, we spoke with Schmitt about what office investors and tenants are seeking in this market and how tenants are navigating the current landlord market.

GlobeSt.com: What are office investors looking for in Orange County?

Schmitt: Investors continue to seek yield in Orange County. It is getting much more challenging for investors, in particular value-add investors, to find opportunities that make sense given the current office valuations and pricing in the marketplace. Creative deal-making and the ability to reposition obsolete real estate are must have attributes for investors in Orange County. Although viewed as a suburban market, investor demand remains high for well-located Orange County office product since investors are attracted by the market fundamentals and the lower pricing compared to West L.A. and Playa Vista. As a result, we have seen new players emerge in this cycle, including Swift Real Estate Partners, Hilrod, Cruzan and Monday Properties.