Orange County's office market is beginning to recover, according to a new report from JLL. In the fourth quarter, leasing activity increased for the second consecutive quarter, with the total available space decreasing by 7% quarter-over-quarter and the office vacancy rate decreasing by 80 basis points.

At the end of the year, technology and automotive companies lead the leasing demand, accounting for 40% of all new office leases. The largest lease transactions in the market were largely signed by technology companies. Anduril signed a lease for 639,206 square feet at 1375 Sunflower Ave. in Costa Mesa; Verizon Communications signed a 119,049-square-foot lease at 15505 Sand Canyon Ave. in Irvine; and Bandai Namco Games signed a deal for 69,647 at 15550 Sand Canyon Ave. in Irvine.

Unemployment also improved in the market, inching down to 3.7%, only slightly higher than the 3.3% unemployment rate in the market before the pandemic. While information-based jobs grew nominally in the market, much of the new job growth has stemmed from trade, transportation and utilities companies.