Orange County’s innovative office economy continues to be supported by healthy underlying demand drivers. Tech, financial and business services companies continue to provide a strong employment base that was not readily present during the last cycle. Major colleges and universities such as Chapman and UC Irvine provide a steady pool of job-seeking professionals. The climate, lifestyle and general quality of life also continues to attract top employment talent from across the country. Office vacancy is trending downward with rental rates increasing beyond pre-recession levels. As the health of the office market solidifies, notable developers like the Irvine Company, Trammell Crow Co. and Lincoln Property have recently commenced or completed construction on formidable office projects. These new office projects are noteworthy in that they were started on a speculative basis. This is a new trend in the market that would have been unheard of less than three years ago. This is a strong indication of the increased confidence by lenders, equity sources and developers in the Orange County office market’s recovery. Irvine Company has become the dominant source of speculative development due to considerable new development. This company was ahead of the spec curve when it built the first sizeable inventory …
CHESAPEAKE AND VIRGINIA BEACH, VA. — Divaris Real Estate Inc. (DRE) has arranged the $13.2 million sale of two office buildings in the Virginia Beach area: Southeastern Virginia Training Center, a 36,277-square-foot property located at 2100 Steppingstone Square in Chesapeake, and Probation and Parole Office Building, an 11,139-square-foot building located at 2520 Nimmo Parkway in Virginia Beach. Jason Oliver and Alex Divaris of Virginia Beach-based DRE represented the seller, Armada Hoffler Properties Inc. The Virginia Beach-based real estate company developed both properties as build-to-suits for the Commonwealth of Virginia.
ALLEN, TEXAS — Kaizen Development Partners has broken ground on a 145,000-square-foot office facility within the One Bethany at Watters Creek development in Allen for Massachusetts-based tech firm NETSCOUT Systems Inc. During the summer of 2018, NETSCOUT will relocate more than 500 employees to the Class A property, which will serve as its regional research and development office. Balfour Beatty is serving as general contractor on the project, which was designed by BOKA Powell.
Looking ahead to the rest of 2017, we can expect to see continued improvement of Miami’s office market based on strong market fundamentals and employment growth. Key trends to watch in 2017 that will help drive and shape the market, include: • Steady, modest growth in office rents • Declining available office supply • New transit-oriented mixed-use developments that include office space in both Miami’s downtown urban core and other connected walkable neighborhoods such as Coconut Grove, Coral Gables and Wynwood • Tenants adopting new office design standards • Increased moves between submarkets and new-to-market companies positively impacting net absorption Office demand will continue to be fueled by vibrant population growth of young professionals and Miami’s appeal as a growing, global and entrepreneurial city. Miami-Dade County’s population has grown 8 percent in the past five years, making it the seventh-largest county in the United States. In 2016, more than 20,000 jobs were added in the county, predominately in the construction, real estate, professional services and financial services industries. This economic growth has fueled expansion activity in the office market and should hold steady in 2017. Miami’s focus on cultivating innovation and entrepreneurship has also positively impacted the office market. In …
ADDISON, TEXAS — Citadel Partners LLC has secured an 8,603-square-foot office lease at 14901 Quorum Drive in Addison on behalf of Plano-based recruiting firm BG Staffing Inc. Mac Morse and Taylor Dickerson of Citadel Partners represented the tenant in the lease negotiations. Ryan Evanich and Chase Lopez of Stream Realty Partners represented the landlord.
MIDLAND, MICH. — The Dow Chemical Co.’s new Global Dow Center has opened in Midland in central Michigan. KIRCO developed the 184,390-square-foot property, and is also constructing a 20,000-square-foot H. H. Dow Visitors and Heritage Center. Demolition of Dow’s former Willard H. Dow 2020 building began in June 2015, which made way for the October 2015 groundbreaking of the Global Dow Center. The new facility is seeking LEED certification. Features of the Global Dow Center include 21,000 square feet of vegetative rooftop and a nearly one-acre decorative pond, which wraps around one-third of the building. An enclosed employee walkway connects occupants to parking and other campus facilities. A glass curtain wall exterior allows for extensive penetration of natural light into the workspaces. Dow produces many products for the building and construction industry, such as sealants, coating materials and polyurethanes. Many of Dow’s products were used in the construction of the project. KIRCO MANIX provided construction services.
ATLANTA — Gro Solutions, a banking software firm, has revealed plans to relocate its headquarters from Johns Creek, Ga., to Bank of America Plaza in Atlanta’s Midtown district. The startup will move to the 37th floor of the tower, the tallest building in the Southeastern U.S., and initially lease around 6,000 square feet, according to the Atlanta Business Chronicle. Gro plans to use the new space to host customer and partner visits, in addition to day-to-day job functions including management, sales, marketing, development and implementation. The company will relocate during the fourth quarter.
WARWICK, R.I. — Fantini & Gorga has arranged a $21 million first mortgage to refinance office condominium space at The Summit, Jefferson Gateway and Metro East office parks, located within one mile of each other at 300 Centerville Road, 931 and 935 Jefferson Blvd. and 117 Metro Center Blvd. in Warwick. Totaling 160,000 square feet of office space, the parks are fully occupied three- and four-story buildings featuring ample parking, landscaped grounds and efficient and flexible floor plans. Jason Cunnane and Tim O’Donnell of Fantini & Gorga arranged the financing for the undisclosed borrower.
YUCCA VALLEY, CALIF. — Marcus & Millichap has negotiated the sale of a net-leased property located at 56845 29 Palms Highway in Yucca Valley. A Fortune 200 company sold the 19,500-square-foot property to an in-state 1031 exchange buyer for $5 million. DaVita High Desert occupies the property. Valerie Cook, Sean Sharko, Austin Weisenbeck and Cody Cannon of Marcus & Millichap represented the seller in the deal.
CHICAGO — GGP Inc. (NYSE: GGP) has unveiled plans to relocate its headquarters to River North Point in Chicago during the first quarter of 2018. The 24-story mixed-use building is located at 350 N. Orleans St. The lease totals 168,000 square feet of office space and equates to two full floors. With over 700 employees working in the corporate office, GGP will occupy the entire fourth floor and a portion of the third and fifth floors of the building. The real estate investment trust, which owns and manages shopping malls throughout the United States, currently operates out of 110 N. Wacker Drive in Chicago. New amenities at River North Point will include a fitness center, 10,000-square-foot tenant lounge, conference center and 5,000-square-foot rooftop deck. Michael Kazmierczak, Ron Lakin and Ellen Zalatoris of CBRE represented the landlord, Equity Office, in the lease transaction. Vineet Sahgal and Meredith O’Connor of JLL represented GGP.