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The Real Report, Q4 Ending, 2010
The Real Report, Q4 Ending, 2010
ENDING
Q4 Q2 Q1
2010 2008 2010
JAMBOREE CENTER
this issue
Building Spotlight 1 1 2 4 Executive Summary Market Asesment Broker Information
BUILDING SPOTLIGHT PROJECT SPOTLIGHT: OPUS CENTER IRVINE IRVINE COMPANY 2050 MAIN STREET, IRVINE
At the center of the Irvine BusiJamboree Center: ness Complex, 2050 Main Street 1-5 Park Plaza, represents the third and final fiIrvine, CA nal phase of the highly successful Opus Center Irvine development 1.6 million 48-acre Irvine Conwithin the square feet of Class-A premier course. office space in the heart of the John Wayne Airport Area. Opus Center Irvine III offers 314,074 square feet of space in 13 stories at the intersection of MacArthur Boulevard and Main Street, acclaimed to be one of the most attractive urban areas in the county.
ORANGE COUNTY OFFICE MARKET quarter of the year. All submarkets decreased in availability with the exception of North County. In the end, the total availability rate fell to 24.4 percent, down 90 basis points from the previous quarter. Heavier activity in the Airport and South County submarkets reflected tenants desire to take advantage of favorable lease terms for highly desirable locations before trophy spaces dwindle and/or rental rates increase. Even though average monthly asking rents dropped to $1.99 on a full service gross basis, down $0.03 from three months ago, effective rents are inching up because landlords are gaining confidence that the market has bottomed and are reining-in concessions. The largest investment transactions in the fourth quarter were the sales of two previously held Maguire Property buildings. In its first entry into the South Coast Metro area, The Irvine Company purchased the 827,000-square-foot Pacific Arts Plaza for $213 million, or $258 per square foot; Maguire originally acquired the buildings in 2005 for $325 million. The other sale was for 415,000 square feet at Quintana to Menlo Equities. Itwas bought out of receivership after Maguire Properties defaulted on the loan, selling for $69.3 million, or $167 per square foot.
Three 20-story towers designed by world-renowned architect Opus Center Irvine provides imSkidmore, owings & Merrill and mediate access to all of Orange two 12-story towers designed by Countys freeway system. Langdon Wilson. LEASE RATES: $3.65 FSG Prime Location off the 405 Freeway and minutes to John Wayne Airport with easy access to the 55 Freeway and the 73, 261, and 241 Toll Roads. Four-Diamond Hyatt Regency Irvine on-site. Energy Star labeled property rated in the top 20% of energy efficient buildings in the nation. Expansive, uninterrupted views. Rental Rates: $2.05 - $2.45 FSG
dropped to the lowest level in two years. The current administration also signed into law an $858 billion bill extending Bush-era tax cuts for all income levels for two years; the measure also reduces payroll taxes for workers by two percentage points for 2011, which should help bolster slow but steady job growth. At the local level, though Orange Countys unemployment rate increased slightly from 9.1 in October to 9.3 percent in November, it still added 19,000 total nonfarm jobs since November 2009. Orange Countys office market turned a corner as the vacancy rate for all property classes declined to 20 percent, down 70 basis points from three months prior. Fourth quarters vacancy rate was 100 basis points less than the markets historical high of 21 percent, which was recorded during the second
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10,000,000 9,000,000 9 000 000 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 , , 3,000,000 2,000,000 1,000,000 0 Airport Area Central County North County South County West County 2,966,673 3,498,246 3 498 246 8,489,728 8 489 728
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5.0%
0.0% Airport Area Central County North County South County West County
200,000
165,024
100,000 22,068 0
North County
North County
(103,612) (151,366)
-200,000
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
65,308 46,042 43,608 24,925 (10,042) 25,342 25 342 27,758 34,250 27,983 (5,658) (33,825) (109,842) (9,396) (9 396) 11,904 37,177
80,000 60,000 40,000 20,000 20 000 0 -20,000 -40,000 -60,000 60 000 -80,000 -100,000 -120,000
T Thousands
199 98
199 99
200 00
200 01
200 02
200 03
200 04
200 05
200 06
200 07
200 08
200 09
2010
2011
2012
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TEAM EXPERIENCE
With over 25 years in the business, we pride ourselves as market makers, providing our clients the most udpated and in-depth perspective on todays marketplace. Our experience and historical knowledge allows our clients to make smarter decisions, resulting in more profit and cost saving opportunities. The combination of a sole proprietors mentality and attention to detail mixed with institutional experience truly makes us a single source solution for all of your Corporate Real Estate needs.
TEAM CAPABILITIES
21 Technology Dr. Irvine Tenant: Bio-Rad Laboratories Size: 65,034 Square Feet
Lease Renegotiation Multimarket Corporate Representation Property Analysis + Space Optimization Architectural Review Relocation Analysis Site Acquisition
Employee Location Optimization Construction Management Lease Administration Market Data & Analysis Property Analysis Lease Negotiations
5230 California Ave Irvine Tenant: Broadcom Size: 53,839 Square Feet
PBS SoCal: By combining the companys headquarters and TV studio under one location, PBS SoCal has finally found a home in Orange County. We found your teams attention to detail, market knowledge, negotiation tactics and professionalism paramount in getting us the best deal possible for the foundation. We appreciate your ability to align our short and long term goals for the foundation with our new office lease and location. Without your teams help, this would not have been possible. On behalf of PBS SoCal Foundation, we would recommend you to anybody who would need representation or information on the Real Estate Market -Mr. Mel Rogers, CEO/ President
15460 Laguna Canyon Road Irvine Tenant: Aleks Corporation Size: 53,220 Square Feet
P 949.978.5659 C 949.300.1057
scott@bridgecre.com
The information contained herein was obtained from third parties, and has not been independently verified by the real estate brokers. Buyers/tenants should have the experts of their choice inspect the property and verify all information. Real estate brokers are not qualified to act as or select experts with respect to legal, tax, environmental, building construction, soils-drainage or other such matters.