The Orange County high-rise market's net absorption rate rose to the 2.6 million-square-feet level during the third quarter of 1986, more than 1 million square feet above last year's total. This brings the total square footage absorbed in 1986 to 800,000.
However, vacancy levels in the same areas increased to 23%. This jump was "not unexpected," according to a report issued by Grubb & Ellis Co., because 2 million square feet of new office space were completed in 1986.
Michael Dorsey, vice president and general manager of Grubb & Ellis' Newport Beach commercial brokerage, had predicted earlier that another 1.7 million square feet would come on the market before year's end. "But it is the absorption rate, not vacancy levels, that is a better indicator of the market's health," he said.
The report indicates that the expected 1986 total for new construction will be 5.3 million square feet. About 6.1 million square feet are currently under construction in Orange County.