Taco Bell Secures Largest Orange County Office Lease in Five Years Amid Market Improvement

Orange County's office market demonstrated improvement in the third quarter, driven by several substantial corporate leases. Taco Bell's new 254,162-square-foot headquarters lease at Irvine Company's Alton HQ in Irvine stands out as the largest office transaction in the county in five years. The fast-food giant plans to relocate from its current Irvine location in 2028.

Overall market data from JLL indicates a positive trend, with total office vacancy falling to 15.4 percent, down from 17.1 percent a year prior. Average asking rents increased to $3.02 per square foot per month, up from $2.90 at the end of 2025. Net absorption, while slightly down for the quarter, remained positive year-to-date at 265,394 square feet. Other notable leases include medical device maker Envista Holdings taking 101,800 square feet and an unnamed aerospace company securing 173,057 square feet in the Airport Area.

Supply remains constrained, with no new office completions recorded this year in Orange County. Only one significant project, a 168,137-square-foot building within the Anaheim Ducks' mixed-use development, is currently under construction and 23 percent pre-leased for a Q4 delivery. Additionally, office conversions are reducing available space, contributing to the tightening market. Developers and investors should note the strong demand for quality office space, particularly in submarkets like South County, despite limited new inventory.