Schmitt: Tenants in Orange County continue to seek spaces that are flexible and highly efficient that will energize and inspire their workforce. In the past, companies used to be able to get by with vanilla office space. However, in today's competitive corporate environment amid the war for talent, smart companies have realized that having attractive space that promotes collaboration and creativity is no longer a “nice to have” but a “must have.” We are finding that if a company has not refreshed or re-worked their space in the last six to 10 years, it is at a competitive disadvantage and is not able to attract the workforce it seeks and requires.

GlobeSt.com: How are tenants navigating the current landlord market?

Schmitt: In most cases, tenants are having to face the reality that the Orange County marketplace has tightened considerably since the tenant-friendly cycle of 2010-2014. Whether considering sublease space, shorter lease terms or alternative submarkets, tenants need to be creative in uncovering opportunities while critically examining their real estate footprint to determine their needs. Now more than ever, tenants need a strategic real estate plan as they enter and navigate the current competitive marketplace.

GlobeSt.com: What do you expect to see in the OC office market for 2018?

Schmitt: Barring any unforeseen geopolitical or worldwide economic crisis, I expect to see the current landlord's market continue its push into 2018. I anticipate seeing modest rent growth in the Greater Airport Area, the Irvine Spectrum, and Central Orange County markets with concessions tightening. Notwithstanding the foregoing, I expect to see a drop in rental rates in formerly tight markets such as Aliso Viejo, where large blocks of space will be hitting the marketplace in 2018. Tenants seeking value are going to continue to be forced to look into tertiary markets such as Cypress, La Palma and south of the Irvine Spectrum in South Orange County.