T
hree major banks have reaffirmed their commitment to Orange County's commercial real estate market by renewing large office leases. Pacific Premier Bancorp, JPMorgan Chase, and Wells Fargo collectively secured a combined 300,000 square feet of space in the Irvine Business Complex, bucking the trend of tenants opting for smaller offices. The renewed leases are among the largest in the county this year.

    Pacific Premier renewed its lease at its headquarters on Von Karman Avenue, while JPMorgan extended its presence at Park Plaza and Wells Fargo reaffirmed its lease at 2030 Main Street. Despite a weak leasing market nationally, Wells Fargo's CEO noted that office fundamentals continue to deteriorate due to lower appraisals and a weak leasing market in many metropolitan areas.

    Orange County has experienced relatively weak leasing activity, with businesses opting for smaller spaces. According to CoStar analysis, only a few leases exceeding 50,000 square feet have been signed this year, down from previous years. Leasing volume for offices over 20,000 square feet has also slowed, making up just 19% of all leasing activity so far this year.

    However, JLL reported that Orange County's leasing volume rose 5% in the third quarter compared to the previous period, with lease renewals driving the market. This month, Google renewed its lease for 196,200 square feet at an Irvine office campus, further indicating a shift towards larger leases.