Orange County Commercial Office Space for Rent

Q3 2026

Q3 2026 Orange County Commercial Real Estate Market Report

Focus: Q3 2026 Market Trends

Executive Summary

Orange County remains one of the strongest commercial real estate markets in Southern California, with retail vacancy at just 3.3% and office posting positive year-to-date absorption. Tenant demand on TenantBase shifted sharply toward office in Q3: office space accounted for 59.4% of all Orange County tenant searches, roughly four times its 14.5% share in Q2.

Sector Snapshot

  • Office: Improving. Direct vacancy was 10.9% in Q2, down from 12.0% a year earlier, with asking rents up 4.3% year over year.
  • Industrial: Softening. Direct vacancy rose to 6.0% and asking rents fell 5.2% year over year.
  • Retail: Very tight. Vacancy was 3.3% in Q3 with rents up 4.52% year over year.
  • Multifamily: Steady. Vacancy held below 5% as more than 3,200 new units delivered.

Orange County Tenant Demand Index

The TenantBase Tenant Demand Index tracks what businesses across Orange County are actively searching for on the TenantBase platform each quarter. Because it measures tenant intent before leases are signed, it shows where demand is heading ahead of traditional vacancy and absorption data.

Q3 2026 Search Share by Space Type (July 1 to September 30, 2026)

  • Office: 59.4%
  • Retail/Storefront: 35.6%
  • Warehouse/Industrial: 5.0%

Three-Quarter Trend

  • Office: 15.3% in Q1, 14.5% in Q2, 59.4% in Q3
  • Retail/Storefront: 45.3% in Q1, 40.5% in Q2, 35.6% in Q3
  • Warehouse/Industrial: 40.0% in Q1, 46.2% in Q2, 5.0% in Q3

Key Takeaways

  • Office became Orange County's top search category in Q3, after ranking last in both Q1 and Q2.
  • Long-term office tenants need far more space. Office searches for 5+ year terms averaged 6,250 to 12,500 SF in Q3, about four times the 1,500 to 3,000 SF in Q2.
  • Short-term office demand rose. Searches for office terms under one year climbed from 43.6% in Q2 to 56.7% in Q3.
  • Retail tenants shifted toward flexibility. Retail searches for terms under one year more than doubled, from 16.7% in Q2 to 35.3% in Q3.

Office Market

Orange County office continued to improve in Q2 2026, the most recent quarter with published countywide office data, with vacancy down from a year earlier and rents rising.

Key Metrics (Q2 2026)

  • Direct vacancy: 10.9%, down from 12.0% a year earlier, with total vacancy at 11.9% (Kidder Mathews)
  • Average asking rent: $2.94/SF per month full service, up 4.3% year over year (Kidder Mathews)
  • Year-to-date net absorption: positive 324,936 SF (Kidder Mathews)
  • Tightest submarket: North County at 8.0% direct vacancy (Kidder Mathews)
  • Airport Area: 12.6% direct vacancy, $3.23/SF, and +175,722 SF of Q2 absorption (Kidder Mathews)
  • Largest lease: Z Supply renewed 54,745 SF at Harbor Gateway Business Center (Kidder Mathews)

TenantBase Office Activity

Demand share: 59.4% of Orange County tenant searches, up from 14.5% in Q2 and 15.3% in Q1.

Lease term preferences:

  • Less than one year: 56.7%
  • 2 to 3 years: 20.0%
  • 3 to 5 years: 11.7%
  • 5+ years: 8.3%
  • 1 to 2 years: 3.3%

Space requirements by term:

  • Less than one year: 1,000 to 2,125 SF
  • 2 to 3 years: 786 to 1,857 SF
  • 3 to 5 years: 750 to 1,750 SF
  • 5+ years: 6,250 to 12,500 SF

Top locations: South Orange County was the most requested area across all space types in Q3, followed by Costa Mesa, Fullerton, Irvine, and Anaheim. Many tenants searched broadly across Anaheim, Costa Mesa, Fountain Valley, Fullerton, and Garden Grove.

TenantBase data vs. the market: Most Orange County office searches on TenantBase are for small suites under 2,200 SF, while a smaller group of long-term tenants needs 6,000 SF or more. Small users will find the most options in the Airport Area and Irvine Spectrum, where vacancy sits above 11%. Larger long-term tenants should start early in North County, the tightest submarket at 8.0% vacancy.

Industrial & Warehouse Market

Orange County industrial softened in Q2 2026 as leasing slowed and rents declined.

Key Metrics (Q2 2026)

  • Direct vacancy: 6.0%, up from 5.1% a year earlier (Kidder Mathews)
  • Availability: 9.2% (Kidder Mathews)
  • Average asking rent: $1.45/SF per month NNN, down 5.2% year over year (Kidder Mathews)
  • Largest lease: Harbor Distributing, 223,406 SF at 5600 Argosy Circle (Kidder Mathews)
  • Largest sale: Kurv Irvine II, 348,230 SF, for $107 million (Kidder Mathews)

TenantBase Industrial Activity

Demand share: 5.0% of Orange County tenant searches, down from 46.2% in Q2 and 40.0% in Q1. Industrial tenants searching in Q3 averaged 2,500 to 10,000 SF on 3+ year terms.

TenantBase data vs. the market: With rents down 5.2% and availability above 9%, small industrial users searching in Orange County have more negotiating room than they did a year ago.

Retail Market

Key Metrics (Q3 2026)

  • Vacancy: 3.3%, down 20 basis points year over year (Kidder Mathews)
  • Average asking rent: $2.77/SF per month, up 4.52% year over year (Kidder Mathews)
  • Year-to-date net absorption: positive 307,406 SF (Kidder Mathews)
  • Notable lease: 24 Hour Fitness, 26,670 SF at 200 Corporate Drive (Kidder Mathews)

TenantBase Retail Activity

Demand share: 35.6% of Orange County tenant searches, down from 40.5% in Q2 and 45.3% in Q1.

Lease term preferences:

  • Less than one year: 35.3%
  • 3 to 5 years: 35.3%
  • 5+ years: 17.6%
  • 2 to 3 years: 11.8%

Space requirements by term:

  • Less than one year: 750 to 1,750 SF
  • 3 to 5 years: 1,000 to 2,500 SF
  • 5+ years: 1,300 to 3,000 SF

TenantBase data vs. the market: Orange County retail tenants on TenantBase are almost entirely small-format users under 3,000 SF. With vacancy at 3.3% and rents rising more than 4% a year, these storefronts lease quickly. Short-term searches doubled in Q3 as more operators look for flexible ways into a tight market, but tenants seeking prime locations should be ready to commit to 3 to 5 year terms.

Multifamily Market

Orange County apartment vacancy has held steady below 5% since late 2025, even as more than 3,200 units delivered in the first half of 2026, according to Northmarq. Rents rose 0.6% in Q2, about double the trailing three-year quarterly average, and the supply wave is expected to ease over the next year.

Q4 2026 Outlook

  • Office: Expect continued gradual improvement, supported by the surge in small-suite tenant searches.
  • Industrial: Expect tenant-friendly conditions as availability stays above 9%.
  • Retail: Expect vacancy to stay near historic lows and rents to keep rising.
  • Multifamily: Expect stable occupancy and firmer rent growth as deliveries slow.

Frequently Asked Questions

What type of commercial space are Orange County tenants searching for in 2026?

In Q3 2026, office space made up 59.4% of Orange County tenant searches on TenantBase, followed by retail/storefront at 35.6% and warehouse/industrial at 5.0%. Office share rose from 14.5% in Q2.

Which Orange County areas are tenants searching most?

South Orange County was the most requested area on TenantBase in Q3 2026, followed by Costa Mesa, Fullerton, Irvine, and Anaheim.

What lease terms do Orange County office tenants want?

56.7% of Orange County office tenants on TenantBase sought terms under one year in Q3 2026, and 20.0% sought 2 to 3 year terms.

What is the office vacancy rate in Orange County?

Orange County office direct vacancy was 10.9% in Q2 2026, down from 12.0% a year earlier, with an average asking rent of $2.94/SF per month full service, according to Kidder Mathews.

What is the retail vacancy rate in Orange County?

Orange County retail vacancy was 3.3% in Q3 2026, with asking rents up 4.52% year over year to $2.77/SF per month, according to Kidder Mathews.

How can I find commercial space in Orange County at no cost?

TenantBase matches business tenants with vetted independent tenant rep brokers across Orange County at no cost to the tenant. Brokers are compensated by the landlord. Get started with TenantBase.

Sources

  1. TenantBase proprietary search data, Orange County, July 1 to September 30, 2026
  2. TenantBase, Orange County Commercial Real Estate Market Report, Q2 2026
  3. TenantBase, Orange County Commercial Real Estate Market Report, Q1 2026
  4. Kidder Mathews, Orange County Office Market Report, Q2 2026
  5. Kidder Mathews, Orange County Industrial Market Report, Q2 2026
  6. Kidder Mathews, Orange County Retail Market Report, Q3 2026
  7. Northmarq, Orange County Multifamily Vacancy Holds Steady as Supply Rises (August 7, 2026)

Disclaimer

Information in this report is aggregated from third-party sources and TenantBase proprietary platform data, and was synthesized with the assistance of AI. Market metrics reflect the most recent published data available at the time of writing. TenantBase search data reflects tenant activity on the TenantBase platform and is not a measure of total market leasing. All figures should be independently verified before making real estate decisions.