Orange County Has Robust Growth in New MOB Development
8 Sep 2021
As new construction spaces with higher rental rates continue to get absorbed, the average rental rate for Orange County medical space has come down from fourth quarter 2020 highs. Nonetheless, the current rate of $3.09 full-service gross represents nearly a 5 percent increase from the pre-pandemic high, according to JLL’s recent Orange County medical office market report.
Orange County has robust growth in new development, with 1.6 million square feet of underway or planned medical office and hospital construction. The new development will impact rates in fourth quarter 2021 and into 2022, however, demand for medical office space will remain strong as these projects are on average 98 percent pre-leased, according to JLL’s report.