Real Report Tenant 4th QTR

8/11/2019 Real Report Tenant 4th QTR

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Jobs | Orange Countys unemployment rate in was

in November 2013 down from a revised 5.8% in O

ber 2013 and below the previous years estimate of 6

This compares with an unadjusted unemploymen

of 8.3% for California and 6.6% for the nation durin

same period. According to the State of Californiaployment Development Department, Orange Co

saw a net increase of 30600 payroll jobs from Nove

2012 to November 2013. The largest gains were 8,3

construction; and 6,200 in leisure and hospitality d

that same period. Government posted the alrgest

over loss, dropping by 4,400 jobs.

rvine Company plansto build a 19-story of-

fice building next to its

existing Newport Center

headquarters beginning

early this year.

The office, located at 520

Newport Center Drive,

s slated to total about

300,000 square feet.

Construction should be

ompleted in 2014, accord-

ng to the Newport Beach-

based real est ate investor

nd developer.

he building will go up

bout two blocks from the

0-story office that is now

being built for investment

manager Pacific Invest-

ment Management Co. at

Newport Center, the high-

nd office market that sur-

ounds the Fashion Island

hopping center. The two

buildings will be the most

prominent offices to go up

n Newport Beach in nearly

0 years.

A GUIDE FOR DECISION MAKINGBY: SCOTT W. JOHNSTONEEXECUTIVE SUMMARY | STEADY GROWTH

Positive Trend |The office market in Orange Coun-

ty continued to convey signs of recovery, posting

over 90,000 square feet of positive net absorption

in the forth quarter of 2013. Both vacancy and avail-

ability continued their downward trends, while lease

rates appeared to be finally beginning an upward

trend. While these are positive indications, stability

will need to be sustained in coming quarters to be

considered recovery.

This Issue:

The Orange County Office Group

Rental Rates |The average asking rates on a full-

service gross (FSG) lease basis per month per square

foot in the Orange Countys office market was $1.93

at the end of the quarter a 2.66% increase from

the previous years rate of $1.88 but two cents higher

than the previous quarters rate . In fact, this is a re-

cord high rate of $2.77 that was established in the

forth quarter of 2008. Class A asking rates for the

county averaged $2.13 FSG the highest being in

the South Countys sub market where Class A rates

averaged $2.25 FSG. We are forecasting that rates

will continue to increase in 2014.

oriented businesses, defense, medical and altern

energy companies and to lead the charge of pos

absorption over the next few years.

Absorption | The office market in Orange County

posted over 85,000 square feet of positive absorp-

tion in the last quarter of the year, most of these

being Class B buildings, giving the market a total of

over 6 million square feet of positive absorption over

since the third quarter of 2010. Look for research-

Building Spotlight

Executive Summary

Market Graphs

Team Information

1

1

2, 3, 4,

6

Vacancy | Orange Countys office market vacancy

tinued its downward trend in the third quarter. D

from the previous quarter (almost 8 basis points), d

sublease space (unoccupied) finished the fourth q

ter at 12.53%, a substantial decrease from the prev

years rate of 13.36% and significantly down from

the Great-Recession peak of nearly 18% in the se

quarter of 2010 and the market high of 23% reco

in 1990.

BUILDING SPOTLIGHT |520 Newport Center Drive

ISSUE: QUARTER 4 | ENDING 2013


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p

Source| Costar

ORANGE COUNTY 4TH QUARTER 2013 | MARKET STATISTICS

Rentable

Square Feet

Under

Construction

Square Feet

Vacant

Square Feet

Vacancy

Rate 4Q13

Available Square

Feet

Availability

Rate

Average

Asking Rent

(FSG)

Net

Absorption

4Q2013

Year-to-D

Net Absorp

Airport Area

Costa Mesa 7,332,741 0 1,133,074 15.5% 1,239,375 16.9% $1.90 19,708 33,979Irvine 23,913,845 108,969 3,136,668 13.1% 4,359,242 18.2% $2.11 193,543 668,129Newport Beach 9,574,539 680,000 899,802 9.4% 1,220,636 12.7% $2.11 90,957 189,242Airport Area 40,821,125 788,969 5,169,544 12.7% 6,819,253 16.7% $2.04 304,208 891,350

North Orange CountyAnaheim Hills 1,030,437 0 189,870 18.4% 178,024 17.3% $1.77 (32,836) (130,830Brea 4,115,128 0 461,422 11.2% 832,595 20.2% $2.00 (49,891) (13,477Buena Park 943,494 0 119,847 12.7% 99,071 10.5% $1.79 105,039 77,898Fullerton 2,508,107 0 281,913 11.2% 543,184 21.7% $1.56 (3,688) 8,103La Habra 142,069 0 2,156 1.5% 2,156 1.5% - 0 (1,429)La Palma 712,038 0 182,430 25.6% 202,924 28.5% $2.08 (45,317) (39,327

Placentia 267,589 0 50,759 19.0% 50,680 18.9% $1.58 1,697 3,005Yorba Linda 423,502 0 40,238 9.5% 79,177 18.7% $1.75 2,793 (14,149North Orange County 10,142,364 0 1,328,635 13.1% 1,987,811 19.6% $1.79 (22,203) (110,206South Orange CountyAliso Viejo 3,088,038 0 243,811 7.9% 403,915 13.1% $2.17 (9,990) 33,979Dana Point 91,876 0 0 0.0% 0 0.0% $0.00 0 0Foothill Ranch 799,893 0 146,040 18.3% 222,794 27.9% $1.90 (4,136) 73,348Irvine Spectrum 9,874,159 0 802,477 8.1% 1,081,630 11.0% $2.39 4,360 382,056Laguna Beach 194,434 0 28,461 14.6% 28,461 14.6% - 0 (3,058)Laguna Hills 1,857,781 0 364,272 19.6% 400,366 21.6% $1.80 (59,914) (44,916Laguna Niguel 1,814,761 0 200,535 11.1% 214,106 11.8% $2.06 (2,491) 17,369Lake Forest 2,101,103 0 311,438 14.8% 472,409 22.5% $1.71 3,306 204,922Mission Viejo 1,914,306 0 263,307 13.8% 306,640 16.0% $1.86 (47,298) (71,054Rancho Santa Margarita 249,472 0 40,287 16.1% 60,076 24.1% $1.45 5,240 22,684San Clemente 474,516 0 40,419 8.5% 86,425 18.2% $1.79 1,586 8,546San Juan Capistrano 836,321 0 181,705 21.7% 189,891 22.7% $2.05 (4,886) (103,484South Orange County 23,296,660 0 2,622,752 11.3% 3,466,713 14.9% $1.74 (114,223) 520,392

Central Orange CountyAnaheim 6,776,007 0 917,761 13.5% 1,394,213 20.6% $1.79 12,344 (19,768Orange 7,074,319 0 905,865 12.8% 1,125,716 15.9% $1.95 6,331 30,590Santa Ana 14,836,729 0 2,254,875 15.2% 2,787,095 18.8% $1.66 (166,860) (436,60Tustin 1,978,556 0 167,900 8.5% 212,228 10.7% $1.72 18,250 108,548Central Orange County 30,665,611 0 4,246,401 13.8% 5,519,252 18.0% $1.78 (129,935) (317,23West Orange CountyCypress 2,091,330 0 336,728 16.1% 464,599 22.2% $1.84 (10,509) 91,485Fountain Valley 1,478,142 469,000 119,191 8.1% 114,551 7.7% $1.68 32,853 83,395Garden Grove 1,562,160 0 67,610 4.3% 124,262 8.0% $1.45 5,705 (9,980)Huntington Beach 2,425,525 0 325,984 13.4% 424,325 17.5% $2.05 6,884 16,597Los Alamitos 616,808 70,000 25,149 4.1% 32,888 5.3% $1.83 12,678 4,551Seal Beach 473,787 0 24,508 5.2% 62,715 13.2% $2.78 (11,894) (16,701Stanton 143,361 0 9,908 6.9% 15,430 10.8% $0.80 396 1,785Westminster 554,280 0 43,253 7.8% 47,289 8.5% $1.84 11,499 20,080

West Orange County 9,345,393 539,000 952,331 10.2% 1,286,059 13.8% $1.78 47,612 191,212

Orange County Total 114,271,153 1,327,969 14,319,663 12.5% 19,079,088 16.7% $1.83 85,459 1,175,50


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Source| Costar

1 City Blvd W.,Orange, CA

Millions Square Feet

1.0

0.8

0.6

0.4

0.2

0.0

(0.2)

4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

PRICE: $56,000,000

PRICEPERSQFT: $154.64

BUYER: WALTONSTREECAPITAL

9.00

8.00

7.00

6.00

5.00

4.00

3.00

Million Square Feet

Direct SF Sublet SF


PRICE: $18,600,000


BUYER: PEREGRINEREALTYPARTNERS

PRICE: $19,467,000


BUYER: YAH INVESTMENTSLLC

PRICE: $15,030,000


BUYER: R. ZABALLOS& S ONS , INC

PRICE: 38,800,000


BUYER: GOLDMANSACHSASSTMGT.

ORANGE COUNTY4TH QUARTER 2013 | SALES COMPARABLES

NET ABSORPTION |

Change in the amount of occupied space from one quarter to

he next

VACANT SPACE |

Change in the amount of occupied space from one quarter

to the next

Million Square Feet

2401 E. Katella Ave,Anheim, CA

895 Dove Street,Newport Beach, CA

30700 Rancho Viejo Rd,San Juan Capo, CA

24502 Pacific Park, Dr.Aliso Viejo, CA

11 12 12 12 12 13 13 13 132Q 3Q 4Q 1Q 2Q 3Q 4Q12 12 12 13 13 13 13

PRICE: $19,850,000


BUYER: COMAC AMERICACORP

4350 Von Karman Ave,Newport Beach, CA

Irvine Concourse,Irvine, CA

PRICE: $114,000,000


BUYER: THEPRAEDIUMGROUPLLC


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$20

$70

$120

$170

$220

$270

$320

2010

1q

2010

3q

2011

1q

2011

3q

2012

1q

2012

3q

2013

1q

2013

3q


3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

11.0%

2010

1q

2010

3q

2011

1q

2011

3q

2012

1q

2012

3q

2013

1q

2013

3q

p4

Source| Costar

Class A Class B Class C

DollarsperSF

Cap

RatePercentage

U.S PRICE SQFT COMPARISON |

Based on office building sales of 15,000 sqft and larger.

U.S. CAP RATE COMPARISON |

Based on office building sales of 15,000 sqft and larger.

PERCENT OF ALL VACANT SPACE BY CLASS |

ORANGE COUNTY UNITED STATES

Class A Class B Class C

PERCENT OF ALL VACANT SPACE BY TYPE |

ORANGE COUNTY UNITED STATES

Orange County United States Orange County United States

Direct Sublet

Direct Sublet

98% 96%

2% 4%

54%

36%

10%

49%

34%

17%


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ource| Costar

EXISTING INVENTORY COMPARISON |

Based on total RBA.

BY CLASS BY SPACE TYPE

ORANGE COUNTY 4TH QUARTER 2013 | LEASE COMPARABLES

56%

15%

29%

22%

78%

Multi SingleClass A Class B Class C

1833 Alton Parkway,Irvine, CA

TENANT: JPMORGANCHASE& CO.

SIZE : 129,262 SQFT

LANDLORD: JONESLANG LASALLE

TENANT: CLEANENERGYFUELS

SIZE : 67,018 SQFT

LANDLORD: THEIRVINECOMPANY

TENANT: GOOGLE

SIZE : 70,000 SQFT

LANDLORD: CUSHMAN

TENANT: FIDELITYNATIONALTITLE

SIZE : 62,850 SQFT


TENANT: ORION PROPERTYPARTNERS

SIZE : 107,651 SQFT

LANDLORD: CBRE

4675 MacArthur Ct,Newport Beach, CA

Stadium Gateway,Stadium Area

Impac Center,Irvine, CA

3220 El Comino Real,Irvine, CA

TENANT: STRA DLI NGYOCCACARLSON

SIZE : 74,000 SQFT


660 Newport Center Dr.,Newport Beach, CA

Sand Canyon Ave,Irvine, CA

TENANT: HOAGMEMORIALHOSPITAL

SIZE : 150,000 SQFT

LANDLORD: NEWMARKGRUBBKNIGHT


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With over 60 years in the business, we pride ourselves as market makers, providing our clients the most updated and in-dep

perspective on todays marketplace. Our experience and historical knowledge allows our clients to make smarter decisio

esulting in more profit and cost saving opportunities. The combination of a sole proprietors mentality and attention to de

mixed with institutional experience truly makes us the best Partner for all of your Corporate Real Estate Brokerage needs.

lease call upon us to provide you with the highest level of friendly service and market data to assist you with making smart

aster real estate decisions.


p6

TEAM EXPERIENCE |

TEAM CAPABILITIES |

[email protected]

[email protected]@CBCAlliance.com

[email protected] [email protected]

SCOTT JOHNSTONE

Executive Vice President

O 949.954.3700

D 949.954.3710

M 949.300.1057

F 949.954.3701

CA Broker# 00950979

GARY ABRAHAM

Vice President

O 949.954.3700

D 949.954.3713

M 714.488.8650

F 949.954.3701

CA Lic# 01061205

DEVON STANKE

Operations ManagerO 949.954.3700

D 949.954.3702

M 949.315.1966

F 949.954.3701

KATIE JOHNSTONE

Marketing AssistantO 949.954.3700

M 949.375.3183

F 949.954.3701

DAVID GIRTY

Senior Vice President

O 949.954.3700

D 949.954.3711

M 949.637.1286

F 949.954.3701

CA Broker# 01052587

JUSTIN CASSEL

AssociateO 949.954.3700

D 949.954.3714

M 949.910.2858

F 949.954.3701

CA Lic# 01934421

[email protected]

By combining the companys headquarters and TV Studio under one location, PBS SoCal has finally found a home in Orange Cou

We found your teams attention to detail, market knowledge, negotiation tactics and professionalism paramount in getting us the

deal possible for the foundation. We appreciate your ability to align our short and long term goals for the foundation with our

office lease and location. Without your teams help, this would not have been possible. On Behalf of PBS SoCal Foundation, we wo

recommend you to anybody who needs representation or information on the Real Estate Market.

Mr. Mel Rodgers, CEO/President

Lease Negotiations

Lease Renegotiation

Multi-market Corporate Representation

Property Analysis + Space Optimization

Architectural Review

Relocation Analysis

Building Acquisition Services

Lease vs. Own Analysis

Land Site Acquisition

Employee Work Flow Analysis

Construction Management Services

Lease Administration

Market Data & AnalysisProperty Analysis & Valuation Services

[email protected]

SCOTT JOHNSTONE

Executive Vice President

O 949.954.3700

D 949.954.3710

M 949.300.1057

F 949.954.3701

CA Broker# 00950979

[email protected]

GARY ABRAHAM

Vice President

O 949.954.3700

D 949.954.3713

M 714.488.8650

F 949.954.3701

CA Lic# 01061205

[email protected]

DAVID GIRTY

Senior Vice President

O 949.954.3700

D 949.954.3711

M 949.637.1286

F 949.954.3701

CA Broker# 01052587

JUSTIN CASSEL

Associate

O 949.954.3700

D 949.954.3714

M 949.910.2858

F 949.954.3701

CA Lic# 01934421

[email protected] [email protected]

ERIC PURMORT

Associate

O 949.954.3700

D 949.954.3712

M 949-278-4616

F 949.954.3701

CA Lic# 01933655

[email protected]

DEVON STANKE

Operations Manager

O 949.954.3700

D 949.954.3702

M 949.315.1966

F 949.954.3701

2600 Michelson, Suite 100, Irvine, CA 92614 | www.CBCAlliance.com | DRE # 01929723

he 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 info

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 .

Real Report Tenant 4th QTR

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