2025 Office Outlook Near John Wayne Airport

Orange County’s Economy: A Bright Outlook
The Orange County economy thrives due to its excellent weather, 40 miles of coastline, and a population of over 3 million residents. Key industries in the Newport Beach/Irvine John Wayne Airport area include finance, energy, professional services, life sciences, and technology. In recent years, tech media companies from Silicon Beach in LA’s South Bay, such as El Segundo, have started moving into the region. As a result, the area now ranks among the top five office space markets on the West Coast and the top 30 nationwide.

Office Market Outlook: 2025
Orange County offers 40 million square feet of office space, but high vacancy rates remain a challenge. In the fourth quarter of 2024, the vacancy rate dropped to 17.5%. While this is an improvement, it is still higher than historical averages. On a positive note, net absorption has been positive for six consecutive quarters, with a gain of 55,000 square feet this past quarter.

In early 2024, the Irvine/Newport Beach market reported a 22% vacancy rate. Much of this was due to Irvine’s surplus of empty office spaces. With demand for office space remaining flat, developers have halted new projects. This has left the construction pipeline empty for the first time since the 2008 global crisis.

Tenants now focus on “flight-to-quality” spaces—smaller, high-end offices with walkable locations and better amenities. Lower rents have created opportunities, particularly in non-core Class A buildings and all Class B and Class C properties.

John Wayne Airport Area: A Premium Submarket
The John Wayne Airport submarket, including Newport Beach, is among the county’s most sought-after areas. Median office rents here are $38 per square foot annually. This submarket features Newport Center and Fashion Island, where mid-rise office buildings are close to desirable residential neighborhoods.

Fashion Island boasts some of the county’s most prestigious office spaces. Rents in Newport Beach can exceed $5.50 per square foot monthly, or $66 annually, making it the most expensive office market in Orange County.

Challenges in Navigating the Market
The size and complexity of Orange County’s office market make finding the right space a time-intensive task. Tenants can achieve the best outcomes by working with experts who understand local market dynamics.