Orange County significantly outpaces Los Angeles in office space conversions, with 4.2 million square feet slated for repurposing, compared to L.A.'s 1.2 million square feet. This disparity is due to factors like lower vacancy rates, higher rents, and desirable living conditions in O.C. The average rent in Orange County reaches $2,861, in contrast to lower averages found in Los Angeles. Additionally, demographic attractions such as safety and quality schools in O.C. contribute to the viability of redeveloping office spaces into residential units, offering promising investments for builders like Meritage Homes.
In Orange County, the office buildings that are being demolished are often low rise, but in Los Angeles, they're high-rise and on less land.
People want to live in Orange County and will pay the price. The average rent per unit is $2,861 in Orange County.
Land can be worth more than office buildings themselves, so it makes sense to tear the buildings down and replace them with residential.
The disparity in office space conversion between O.C. and L.A. may be attributed to Orange County's stronger fundamentals such as lower vacancies and higher effective rents.
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