Chris Drzyzga, SIOR — In a market still struggling against the lingering impacts of hybrid work, rising capital costs, and evolving user demands, the recent sale of 2400 E Katella Ave in Anaheim stands out—not just for its price tag, but for what it signals about the future of office real estate in Orange County.

Acquired for $275 per square foot by Henry and Susan Samueli, the 12-story, 90% leased Class-A office building represents the highest price paid for a Central County office asset in over three years. But this transaction is more than just a headline—it’s a case study in two structural trends reshaping our market: flight-to-quality and the emergence of mixed-use campuses.

The Samuelis’ acquisition adds another strategic component to its signature development, the OCVibe—a $4 billion, 100-acre, master-planned district that will integrate office, retail, hospitality, residential, entertainment, and green space around the Honda Center and ARTIC transit hub. With completion targeted for 2028, just ahead of the LA Olympics, OC Vibe exemplifies how placemaking and experience-driven environments are outperforming traditional stand-alone office buildings.

This isn’t an isolated play. Across the county, owners and developers are pursuing similar strategies. Starting in 2026, five major sites in the South Coast Metro submarket will undergo phased transformations—replacing aging malls and low-density retail with walkable, urban villages featuring housing, senior care, retail, hospitality, and civic infrastructure. These projects reflect a broader recalibration of land use and a recognition that office now performs best when integrated into vibrant, lifestyle-oriented ecosystems.

The Irvine Company’s plan to reposition parts of its Newport Center and MacArthur Court projects into residential and amenity-driven communities is further evidence that this is not a temporary pivot—it’s a fundamental shift in how we plan, finance, and operate commercial real estate.

Just as important, these projects aren’t only responding to the challenges of the office market. They’re also addressing a critical regional need for housing. Cities like Anaheim, Santa Ana, and Newport Beach face ambitious, state-mandated housing goals, and these mixed-use redevelopments offer a practical, scalable path forward—delivering new residential inventory in desirable, transit-connected, and high-amenity environments.

Yes, challenges remain. Leasing velocity is still inconsistent, capital is selective, and tenants are more discerning than ever. However, these projects make clear the future of commercial property development here in Orange County—projects that are part of something bigger, rich in amenities, and built for how people live and work in our high-tech world. Quality and context are no longer optional, they are the price of admission.