Orange County Office Trends & Portfolio Progress | December 2025
As we approach the end of the year, the Orange County office market continues to evolve in response to shifting tenant preferences, economic headwinds, and a renewed focus on quality assets. The landscape is being shaped by a combination of factors: hybrid work models are redefining space utilization, tenants are gravitating toward well-located, amenity-rich buildings, and landlords are recalibrating strategies to meet changing demand.
Q3 2025 Orange County Market Snapshot
According to CBRE’s Q3 2025 Orange County office figures, the market recorded over 290 lease transactions totaling 1.8 million square feet.[1] Net absorption turned positive for the first time this year, with 59,000 square feet absorbed in the quarter. Vacancy declined to 14.8%, a 90-basis-point improvement, while asking lease rates dipped slightly to $2.81 FSG per square foot per month. These figures suggest a market that is beginning to stabilize, with tenants gravitating toward well-located, high-quality buildings, though conditions remain subject to broader economic factors.
JLL’s Q3 2025 Office Market Dynamics report reinforces this trend, noting that the demand for premium assets is driving leasing activity in Orange County.[2] Tenants are prioritizing Class A buildings in core submarkets such as Newport Beach and Irvine. The Airport Area submarket continues to outperform due to its proximity to executive housing, retail amenities, and transit infrastructure. While overall vacancy remains elevated, the demand for premium space is helping to buoy market sentiment.
In addition to leasing, sales activity shows signs of life. According to Cushman & Wakefield, the Orange County office market recorded $204 million in sales volume across seven transactions in Q3 2025, up 117% year-over-year.[3] The average price per square foot rose to $201, a 22% increase quarter-over-quarter. Private buyers led the charge, accounting for 57% of acquisitions, followed by users at 29% and institutional investors at 14%. Inventory is also being removed from the market as older office buildings are demolished and sites are repurposed for the highest and best use, which in the current market often means housing and mixed-use developments.
Newport Beach Asset Outperforms in Shifting Market
Shopoff Realty Investments’ property, Waypoint Newport, located at 4440 Von Karman in the Airport Area submarket, reflects the type of location and amenities currently in demand. Originally positioned as a for-lease office building, we made a strategic decision to convert the property into office condominiums rather than sell the building as a whole. This approach has allowed us to meet market demand for ownership opportunities in premium locations.
To date, we have closed sales totaling 28,206 square feet, representing approximately 62% of the building’s total 45,501 square feet. We anticipate the project could be fully sold in early 2026; however, there is no guarantee that sales timing or pricing will occur as expected. If you’d like to get more information on Waypoint Newport, head to www.waypointnewport.com.
Looking Ahead
Although the office market is not currently a primary focus of our business, we are noticing signs of resilience throughout the Orange County market. We remain engaged in selecting asset classes with our broader strategy and long-term growth potential in mind and continue to be optimistic about the opportunities ahead and in our ability to navigate the shifting dynamics with clarity and purpose.
Disclosures
[1] CBRE. Orange County Office Figures – Q3 2025. 9 Oct. 2025, https://www.cbre.com/insights/figures/orange-county-office-figures-q3-2025.
[2] Jones Lang LaSalle. Orange County Office Market Dynamics – Q3 2025. JLL, 2025. https://www.jll.com/en-us/insights/market-dynamics/orange-county-office.
[3] Campion, Jolanta. Orange County Office MarketBeat Report Q3 2025. Cushman & Wakefield, 8 Oct. 2025, https://www.cushmanwakefield.com/en/united-states/insights/us-marketbeats/orange-county-marketbeats.
*There is no assurance that this strategy will succeed to meet its investment objectives.
This newsletter is for informational purposes only and does not constitute investment advice or an offer to buy or sell securities. Past performance is not indicative of future results. This is not an offering to buy or sell any securities. Such an offer may only be made through the offering’s memorandum to accredited investors. Any investment in Shopoff Realty Investments (“SRI”) programs involves substantial risks and is suitable only for investors who have no need for liquidity and who can bear the loss of their entire investment. The performance of former assets is not indicative of the future results of other assets. Securities offered through Shopoff Securities, Inc. (“SSI”) member FINRA/SIPC
