Office Lease Costs Dip

Thanks to a building-boom generated vacancy factor, office space in Orange County is less expensive than it was three years ago.

The county’s average monthly lease rate per square foot was $1.65 in the fourth quarter of 1988, according to Coldwell Banker. The rate was $1.67 in the fourth quarter of 1985 and $1.73 in the fourth quarter of 1987.

The office vacancy factor was 21.7% in the fourth quarter of 1988--up from 15.1% in 1985, according to the commercial realty firm, with 3.6 million square feet of space under construction in a market where existing space totals 45.4 million square feet.

Corona del Mar had the highest average lease rate in Orange County, $2.25 per square foot per month, Coldwell Banker reported. Fountain Valley and Yorba Linda tied for least expensive, with an average of 95 cents.