The Real Report, Q4 Ending, 2010

8/4/2019 The Real Report, Q4 Ending, 2010

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Building Spotlight

Executive Summary

Market Asesment

Broker Inormation

BUILDING SPOTLIGHT

OPUS CENTER IRVINE

2050 MAIN STREET, IRVINE

At the center o the Irvine Busi-

ness Complex, 2050 Main Streetrepresents the third and nal -

nal phase o the highly successul

Opus Center Irvine developmentwithin the 48-acre Irvine Con-

course.

Opus Center Irvine III oers314,074 square eet o space in

13 stories at the intersection oMacArthur Boulevard and Main

Street, acclaimed to be one o themost attractive urban areas in the

county.

Opus Center Irvine provides im-

mediate access to all o OrangeCountys reeway system.

LEASE RATES: $3.65 FSG

SSUE

Q12008

A GUIDE FOR DECISION MAKINGBY: SCOTT JOHNSTONE

EXECUTIVE SUMMARY - Turning a Corner

Measurable progress was made in the na-

tional economy and the local oce market over the

past six months. In December, the national unem-

ployment rate ell to 9.4 percent as nonarm pay-

rolls increased by 103,000 rom the previous month.

Additionally, October and Novembers numbers

were revised upward and claims or jobless benetsdropped to the lowest level in two years. The current

administration also signed into law an $858 billion

bill extending Bush-era tax cuts or all income levels

or two years; the measure also reduces payroll taxes

or workers by two percentage points or 2011, which

should help bolster slow but steady job growth. At

the local level, though Orange Countys unemploy-

ment rate increased slightly rom 9.1 in October to

9.3 percent in November, it still added 19,000 totalnonarm jobs since November 2009.

Orange Countys oce market turned a

corner as the vacancy rate or all property classes de-

clined to 20 percent, down 70 basis points rom three

months prior. Fourth quarters vacancy rate was 100

basis points less than the markets historical high o

21 percent, which was recorded during the second

quarter o the year. All submarkets decreased in

ability with the exception o North County. In the

the total availability rate ell to 24.4 percent, d

90 basis points rom the previous quarter. He

activity in the Airport and South County subma

refected tenants desire to take advantage o

able lease terms or highly desirable locations b

trophy spaces dwindle and/or rental rates incr

Even though average monthly asking rents dro

to $1.99 on a ull service gross basis, down $0.03

three months ago, eective rents are inching u

cause landlords are gaining condence that the

ket has bottomed and are reining-in concessions

The largest investment transactions i

ourth quarter were the sales o two previously

Maguire Property buildings. In its rst entry int

South Coast Metro area, The Irvine Company

chased the 827,000-square-oot Pacic Arts Plaz

$213 million, or $258 per square oot; Maguire o

nally acquired the buildings in 2005 or $325 m

The other sale was or 415,000 square eet at Quin

to Menlo Equities. Itwas bought out o receiversh

ter Maguire Properties

deaulted on the loan, selling or $69.3 millio

$167 per square oot.

ORANGE COUNTY OFFICE MAR

SSUE

Q22010

SSUE

Q12008

PROJECT SPOTLIGHT:

IRVINE COMPANY

Jamboree Center:

1-5 Park Plaza,

Irvine, CA

1.6 million square eet o Class-Apremier oce space in the hearto the John Wayne Airport Area.

Three 20-story towers designedby world-renowned architect

Skidmore, owings & Merrill andtwo 12-story towers designed by

Langdon Wilson.

Prime Location o the 405 Free-way and minutes to John Wayne

Airport with easy access to the 55

Freeway and the 73, 261, and 241Toll Roads.

Four-Diamond Hyatt Regency Ir-

vine on-site.

Energy Star labeled property -rated in the top 20% o energy e-

cient buildings in the nation.

Expansive, uninterrupted views.

Rental Rates:

$2.05 - $2.45 FSG

JAMBOREE CENTER

SSUE

Q42010NDING


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Vacant Space by SubmarketOrange County Office Space, Fourth Quarter 2010

9 000 000

10,000,000

8,489,728

7,000,000

8,000,000

, ,

4,000,000

5,000,000

6,000,000

, ,

1,577,894

2,966,673

2,000,000

3,000,000

,

0

1,000,000

Airport Area Central County North County South County West County

Vacant Space by Submarket


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21.6%

25.0%

20.0%

21.0%19.2%

20.0%

11.4%

10.0%

15.0%

5.0%

0.0%


Vacancy Rates by Submarket

336,560

400,000

200,000

300,000

22 068

165,024

100,000

,

0


(151,366)

(103,612)

-200,000

- ,

Net Absorbtion Square Footage by Submarket

Central County North County

Airport Area South County West County

Seasonall y Adjusted

Total

1998 65,308

1999 46,042

40,000

60,000

80,0002000 43,608

2001 24,925

2002 (10,042)

-40,000-20,000

0,

housan

ds ,

2004 27,758

2005 34,250

2006 27,983

-120,000-100,000

-80,000- ,

8 9 0 1 2 3 4 5 6 7 8 9 0 1 2

2007 (5,658)

2008 (33,825)

2009 (109,842)

19

19

20

20

20

20

20

20

20

20

20

20

201

201

201

Source: U.S. Bureau of Labor Statistics

,

2011 11,904

2012 37,177

Yearly Job Change, Orange County


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With over 25 years in the business, we pride ourselves as market makers, providingour clients the most udpated and in-depth perspective on todays marketplace. Ouexperience and historical knowledge allows our clients to make smarter decisions

resulting in more prot and cost saving opportunities.

The combination o a sole proprietors mentality and attention to detail mixed with institutional experience truly makes us a single source solution or all o your Corporat

Real Estate needs.

Notable Market

Transactions:TEAM EXPERIENCE

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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

PBS SoCal:

By combining the companys headquarters and TV studio under one location, PBS SoCa

has nally ound a home in Orange County. We ound your teams attention to detail, marke

knowledge, negotiation tactics and proessionalism paramount in getting us the best dea

possible or the oundation. We appreciate your ability to align our short and long term goal

or the oundation with our new ofce lease and location. Without your teams help, this would

not have been possible. On behal o PBS SoCal Foundation, we would recommend you to

anybody who would need representation or inormation on the Real Estate Market

-Mr. Mel Rogers, CEO/ President

Irvine

Tenant: Aleks Corporation

Size: 53,220 Square Feet

15460 Laguna Canyon Road

Irvine

Tenant: Broadcom


5230 Caliornia Ave

Irvine

Tenant: Bio-Rad Laboratories


21 Technology Dr.

Costa Mesa

Buyer: The Irvine Company


Pacifc Arts Plaza

The inormation contained herein was obtained rom third parties, and has not been independently veried by the real estate brokers. Buyers/tenants should have the experts o their choice inspthe property and veriy all inormation. Real estate brokers are not qualied to act as or select experts with respect to legal, tax, environmental, building construction, soils-drainage or other sumatters.

The Real Report, Q4 Ending, 2010

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