Rents had fallen on an annualized basis for nearly two years following the onset of the pandemic. Concessions are beginning to pick up as the availability rate has grown to 16.8%. Escalations are typically in the 3% to 4% range and free rent, typically about 1.0 to 1.5 month for each year of the term. Built-out costs have gone up from what had been a typical $40/SF to $75/SF. This coincides with a notable increase in sublet space that is trending at an all-time high of roughly 4.5 million SF. Both Irvine and the Irvine Spectrum paced new leasing activity in the past 12 months with many tenants seeking out high-end office space in well-located areas close to amenities.
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