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Office rents increase, vacancy rate hits 10.53 percent in Orange County, Calif.

Byline: Mathew Padilla

Oct. 1--A surge in office construction combined with sweeping layoffs at mortgage companies lead to both higher office vacancy and higher rents in Orange County in the third quarter.

The county's office vacancy rate hit 10.53 percent at the end of last month, the highest in nearly three years, reports Voit Commercial Brokerage. In December 2004 it was 10.8 percent and its previous peak was 17.2 percent in March 2002, amid the last construction wave.

In all, developers have finished work on 3.5 million square feet of offices so far this year with another 1 million coming in the fourth quarter, says Jerry Holdner, vice president of market ...

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