A 6-year Effective Rent Trend Chart is a snapshot of effective rent and concessions in Orange County.
One of the markets that suffered greatly from the 2008 financial crisis and the depression that followed is the Orange County office leasing market. While many real estate market had bottomed in 2010, an examination of the past 6 years trend in Orange County shows that the market rates of the effective rent for office leases had reached the bottom of $1.57 only in 2011 and had stayed relatively flat, breaking $1.60 per square foot a month in the past year.However, as can be seen from the trend of concessions, good news may be in store for OC landlords. While free rent concessions have been stable at around four months of rent abatement, TI allowances have topped at the same time that rent has bottomed, and have been decreasing since. The decrease of TI, combined with the increase in effective rent, means that starting rents are pretty flat, but it is normally an indication that demand is increasing, and the result will be increases in both starting and effective rent.