Declining in rents took a toll on Orange County’s office market in the second quarter as businesses continued to shed space at an alarming rate. Reportedly, the county’s office market totals about 107 million square feet of space, which saw rents falling 3 percent in the second quarter as compared to the first quarter.

Monthly rents for higher-end buildings are now average about $2.30 per square foot to $2.60 per square foot, which are off almost 15 percent from a year ago. Also, rents are down close to 18 percent from the 2008 peak of Orange County’s office market.

Businesses in Orange County shed about 1 million square feet more space than they leased in the quarter. This marks the continuation of a trend of negative absorption that has been ongoing since 2007. According to data from the local offices of Santa Ana-based Grubb & Ellis Co., factoring in empty space that is available for sublease, the county’s office market now counts an availability rate close to 25 percent. The situation indicates a very little hope for an uptick in rents, but that is good news for tenants looking for an upgrade in space.

“It’s a historic time” to be a tenant in OC, said Royce Sharf, executive vice president for the Irvine office of brokerage Studley Inc. “We’re seeing transaction terms we never thought were possible.”

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