Taco Bell’s Office Lease Largest in Orange County, Calif., in Five Years

Orange County, Calif.’s office market improved again in the third quarter thanks to a diverse set of corporate leases.

Total vacancy improved to 15.4 percent, down from 17.1 percent a year ago, while average asking rents increased to $3.02 per square foot per month, up from $2.90 at the end of 2025, according to new data from JLL. Net absorption slipped slightly for the quarter, but remained positive on the year at 265,394 square feet, compared to negative 158,099 square feet for all of 2025.

Tenants signed about 1.55 million square feet of leases during the quarter, led by Taco Bell’s 254,162-square-foot lease at Irvine Company’s Alton HQ, the largest office lease signed in Orange County in five years. (The maker of the Crunchwrap Supreme plans to relocate from its current Irvine headquarters in 2028.)

Medical device maker Envista Holdings also signed for 101,800 square feet across three buildings, while an unnamed aerospace company took 173,057 square feet across two Airport Area properties, including 102,417 square feet at 4000 MacArthur Boulevard.

The South County submarket posted the strongest quarterly absorption at 86,107 square feet, with Irvine Company’s Irvine Spectrum campus contributing 133,115 square feet. However, several other submarkets posted losses in absorption.

Supply remains tight as Orange County has recorded no new office completions so far this year, and only one project — the 168,137-square-foot building underway at the Anaheim Ducks’ $5 billion mixed-use development — is under construction. The project is expected to deliver in the fourth quarter, and is already 23 percent pre-leased. Office conversions are also removing space from the market.

Gregory Cornfield can be reached at gcornfield@commercialobserver.com.

Source: commercialobserver.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.