Editor’sPage
Cloudy in The OC
For as long as I can remember, and I’ve
lived in Southern California for 40 years
now, Orange County has been the jewel
of the region. And aside from a few troubles—
such as when an investment fund meltdown
cost the county more than $1.5 billion, forcing it to declare Chapter 9 bankruptcy 14 years
ago this month—Orange County has been the
place to be for residents and businesses alike.
But the current mortgage crisis has changed
all of that for now, causing several financial and
real estate-related firms in the area to close up
shop, putting back onto the market large chunks of office space that have pushed
vacancy past 16% and upping the area’s jobless rate.
A recent Grubb & Ellis Co. report reveals that the last two quarters have shown
a trend of large blocks of space going to market, and in that last quarter alone, 50
buildings in excess of 100,000 square feet have become available for lease or sale.
Year to date there has been 351,000 square feet of negative absorption. Leasing activity was down 50% in the third quarter compared with the same period in 2007.
While the OC is feeling the downturn across all property types, portions of the
area are also showing healthy signs, and just about everyone agrees it will return
with a vengeance once we bottom out. When and how quickly is anybody’s guess. In
the meantime, as a newsperson, I can only invite you to “read all about it.”
OC coverage starts on page 8 with a Q&A with G&E’s Kurt Strasmann on Orange
County office space. Beginning on Page 42 is Natalie Dolce’s story on Maguire
Properties Inc.’s president and CEO Nelson Rising’s keynote speech during an
awards dinner last month. Coverage continues on page 44 with our spotlight on
Orange County.
Speaking of Dolce, please welcome her to Real Estate Southern California. She uprooted from her home in New York City, where she worked in our corporate office
as the Northeast bureau chief for GlobeSt.com. She’s now the West Coast bureau
chief, and she will be a mainstay within the pages of RESOCAL, bringing to the
publication years of industry knowledge and a solid news background.
There’s no doubt the OC will continue on as one of Southern California’s jewels—it’s the home of Disneyland, it has some of the best beaches in the nation
and it remains a prime spot for retailers looking for a nice middle- to upper-class
demographic. But for now, there’s no avoiding the bad news in Orange County, as
just about everywhere else.
Don Jergler, Editor
don.jergler@incisivemedia.com
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