News Summary
The commercial real estate market in Orange County has seen a slight decline, with a 1.5% decrease in rentable square footage. Despite this downturn, various sectors, especially industrial and retail, show promising growth opportunities. Key players like Cushman & Wakefield report significant expansion, though others struggle to adapt amidst economic pressures and evolving management trends. The landscape is mixed, revealing pockets of both challenge and opportunity.
Orange County’s Commercial Real Estate Market Sees Slight Dip
The commercial real estate landscape in Orange County has recently taken a small step back, with the rentable footprint for the top 16 property managers experiencing a *1.5% decline*. The numbers show the market shrinking from 129.8 million square feet to 127.8 million square feet over the past year, as of March 2025. While it may seem like a downturn, the real estate scene remains busy with a mixed bag of data, revealing both challenges and opportunities across various sectors.
Who’s Managing What?
In the current climate, the top five third-party commercial real estate firms—JLL, CBRE, Lincoln Property Co., Transwestern Real Estate Services, and Essex Realty Management—are managing a hefty total of 77 million square feet in Orange County. It’s quite a significant chunk of the market, but there are shifting trends within these numbers.
The Bright Side of Industrial Real Estate
Amid the slight overall decline, the industrial real estate sector is shining bright. With numerous opportunities for property management, this sector continues to thrive despite the challenges faced by others. As industries evolve, the demand for industrial spaces is showing promising signs, making it one of the strongest areas for potential growth.
Office Market Challenges
On the flip side, the office sector is grappling with its own challenges. There has been a notable shift towards self-managing owners, which is reducing new opportunities for property management firms in this space. As more companies decide to oversee their own properties, the traditional management routes are becoming less appealing.
Retail’s Revival
However, it’s not all doom and gloom! There’s a glimmer of hope in the retail market, which has seen an uptick in investment sales recently. This can be attributed to an increase in retail sales revenue paired with favorable financing conditions. As a result, new retail property management opportunities are popping up, offering a much-needed lift to the sector.
Growing Firms and Their Successes
It’s important to note that not all property managers are feeling the squeeze. Two firms, Cushman & Wakefield and Coreland Cos., have impressive growth under their belts, reporting double-digit increases in the rentable square feet they manage within Orange County. Cushman & Wakefield has expanded its portfolio by more than 1 million square feet, marking an impressive 11.8% growth year-over-year. Meanwhile, Coreland Cos. has also made strides, growing its portfolio by nearly 500,000 square feet, amounting to a significant 17.9% increase.
Mixed Results for Others
Nevertheless, it appears that not everyone shares in this growth. Several of the 16 property managers have reported a decline in their portfolios, with firms including CBRE, Transwestern, PacificWest Asset Management Corp., and Sares Regis Group all seeing decreases in the amount of rentable commercial square footage they manage. Interestingly, others like Unire Real Estate Group Inc. and Athena Property Management showed modest growth, but it was less than 1% year-over-year.
What’s Causing the Stagnation?
The stagnation in the commercial real estate market has been linked to a range of economic and policy factors emanating from Sacramento. Many property owners are feeling the pinch of new taxes and fees, which could potentially create hurdles for future investments in the segment.
Self-Managing Companies Still in the Game
It’s also worth mentioning that some major players, such as the Irvine Company, continue to manage a significant amount of commercial space, with 36.8 million square feet under management—even if slightly down from last year. Notably, companies like Caribou Industries Inc. and LBA Realty LLC are navigating the waters with various rates of success, reflecting a divide within the market.
Conclusion
In conclusion, while Orange County’s commercial real estate market faces some challenges, there are definitely *pockets of opportunity* out there. The industrial sector is still promising, and retail is on the rise. For many property managers, the key will be to adapt to the evolving landscape and seize growth opportunities wherever they arise.
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Additional Resources
- Orange County Business Journal
- Bisnow Orange County State of the Market
- OC Register
- World Property Journal
- JLL Newsroom
- Wikipedia: Commercial Real Estate
Author: STAFF HERE MISSION VIEJO WRITER
MISSION VIEJO STAFF WRITER The MISSION VIEJO STAFF WRITER represents the experienced team at HEREMissionViejo.com, your go-to source for actionable local news and information in Mission Viejo, Orange County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Oso Fit 5K Fun Run and Community Health Fair, Walk Against Drugs & Community Fair, and National Night Out. Our coverage extends to key organizations like the Mission Viejo Chamber of Commerce and Providence Mission Hospital Mission Viejo, plus leading businesses in retail and education that power the local economy such as The Shops at Mission Viejo, Capistrano Unified School District, and Amazon Delivery Station. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECostaMesa.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HERESanDiego.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.
