📈 Irvine Company logs nearly 2.5 million square feet of office leases in Q3

Irvine Company signed nearly 2.5 million square feet of office leases in the third quarter, led by Taco Bell’s 254,000-square-foot commitment at Alton HQ in Irvine. The leasing surge also produced 722,000 square feet of positive net absorption across the portfolio.

Commercial Observer reported that the quarter’s activity was concentrated in Orange County, where vacancy also improved as several large deals closed. Newmark’s separate quarterly data showed U.S. office leasing volume rising to 62 million square feet in Q3, up 18% year over year, signaling that tenant demand is stabilizing even if it remains below pre-pandemic levels.

Why it matters for investors

The numbers point to a selective but real recovery in office demand, with large occupiers still willing to commit to high-quality space in supply-constrained or well-located submarkets. For landlords with modern assets and strong tenant rosters, the leasing environment is improving faster than the broader U.S. office market, which continues to face weaker occupancy and sharper pricing scrutiny.

➡️ Orange County is showing a clearer demand recovery than the national office market.

➡️ Large tenant commitments remain concentrated in higher-quality buildings and established business districts.

The data suggests that office performance is becoming increasingly bifurcated, with capital and leasing momentum favoring top-tier coastal markets and best-in-class assets.