Newport Beach, CA - Office Market Overview
The Newport Beach real estate market includes the Newport Center, Santa Ana Heights, and West Newport Beach commercial real estate submarkets. While Newport Beach itself is home to only about 87,000 residents, the city is also part of the Greater Los Angeles region, which is home to over 13 million people.
As of mid-2017, the Newport Beach office market encompasses nearly 8.4 million square feet of existing office space in properties larger than 50,000 square feet. The commercial real estate market in Newport Beach, CA, sees robust demand from a winning combination of tourism and a variety of corporate headquarters.
Newport Beach, CA - Office Inventory Description
Recently, housing prices in Newport Beach ranked the eighth-highest in the U.S., a testament to the city's affluent residents and the type of companies that do business here. Because of that, it's probably no surprise that almost 66% of the office space in Newport Beach is Class A or A+, while Class B product brings another 2.8 million square feet of space to the commercial real estate market.
One area of Newport Beach that sees consistently strong demand for office space is the Santa Ana Heights office submarket. Located immediately south of John Wayne Airport, this part of the city is home to investment-quality office buildings such as Centerpointe on Macarthur Boulevard, The Jetty on Irvine Avenue, and the 1500 Quail office building.
Newport Beach, CA Commercial Inventory Breakdown
Total: 8,766,891 SF
By square footage range:
- 50k to 100k SF: 1,953,824 SF / 22.29% of total office
- 100k to 500k SF: 6,813,067 SF / 77.71% of total office
- Class A+: 706,000 SF / 8.05% of total office
- Class A: 5,291,178 SF / 60.35% of total office
- Class B: 2,769,713 SF / 31.59% of total office
Newport Beach, CA - Green Office Space
When tenants and professional real estate investors look for green office space in Newport Beach they are not disappointed. There are 15 green office buildings in Newport Beach that contribute a total of over 3.5 million square feet of green office space to the market. This total represents office property rated as green, LEED-certified, or Energy Star-rated.
One great example of a LEED-certified office building in Newport Beach is the 620 Newport Center Drive property. Located just north of the Newport Center business, shopping, and entertainment district, this office building was constructed back in 1971 and brings 237,000 square feet of Class A LEED Silver-certified office space to the Newport Beach office market.
With green office space in Newport Beach accounting for 43% of the total office inventory, the city has some of the highest percentage of energy-efficient green buildings in the entire State of California. According to the 2017 National Green Building Adoption Index, which looked at office buildings in the top 30 U.S. office markets, California has six cities that rank among the top 30 green office markets.
Newport Beach, CA's Top Office-Using Sectors
The Newport Beach commercial real estate and Class A office markets see consistently strong demand from top office-using sectors like insurance and financial services, healthcare, tourism, and larger corporate office users.
- Insurance & Financial Services – White-collar office employment in Newport Beach is created by companies such as Pacific Life and PIMCO.
- Healthcare – Organizations such as Hoag Memorial Hospital Presbyterian and Glidewell Dental are among the largest employers in this top office-using sector.
- Tourism – Demand for commercial real estate in Newport Beach is driven by businesses such as the Resort at Pelican Hill, The Island Hotel, the Balboa Bay Club, and the Newport Beach Marriott Hotel & Tennis Club.
- Corporate Office – Acacia Research, the Galardi Group, and Jazz Semiconductor help to drive the demand for Class A white-collar office space in Newport Beach, CA.
Newport Beach Demographics
- Total Population86,793
- Male Population(48.7 %) 42,295
- Female Population(51.3 %) 44,498
- Median Age46.70
- Average Household Income$198,726
- Median Household Income$119,379
- Median Income Under 25$40,793
- Median Income 25-44$128,024
- Median Income 45-64$143,682
- Median Income Over 65$95,065
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