Amid leasing slowdown, office demand driven by smaller transactions

Leasing volume declined in Q3 2025, with most top leases below 40,000 square feet (sf) and renewals accounting for three of the top 10 transactions. Overall office leasing in Orange County totaled 1.5 million square feet (msf), a 16.9% decrease from the prior quarter and a 23.7% decline year-over-year, underscoring the slowdown. Activity fell in all submarkets except the Irvine Spectrum submarket, which posted an 11.3% gain. Despite the weaker quarter, demand is projected to strengthen heading into year-end, supported by rising return-to-office trends, with Irvine reaching 72.0% of January 2020 levels, according to PlacerAI.

Read the full report