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GlobeSt.com: How are you financing these acquisitions, and the company in general?

Paul Miszkowicz: Harbor Associates is a joint venture with The Bascom Group of Irvine, CA. We will seek financing options that allow us to be nimble in executing our business plan. Non-recourse debt with prepayment flexibility will allow us to stay opportunistic.

GlobeSt.com: What is happening in the office market that drove the decision to launch a value-add office investment business now?

Miszkowicz: The primary driver in office space decisions is no longer cost cutting. We see companies increasingly investing in their physical workspace to attract and retain top talent. More firms are now comfortable paying rental premiums for modern space. We believe there is a supply and demand imbalance for the type of innovative office product today's tenants are looking for.

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GlobeSt.com: You'll be renovating and repositioning these assets. What are some of the major trends and characteristics in office design that help to drive tenancy?

Joon Choi: Our asset-level business plans will have three common themes:

First, we will command higher rents by increasing employee productivity. Our renovations are focused on creating workplaces that give employees the ability to control interruptions, see and be outdoors, have unlimited mobility, and be inspired to innovate.

Second, we will give employees a variety of work areas. To offset the trend towards greater density and shrinking personal space, we will provide areas where employees can focus or make a private call, which provides a balance to shared spaces.

Third, We will add more conveniences and amenities. Because there is less delineation between work and life outside of work, we like mixed-use projects where retail conveniences like fitness and eating/drinking establishments can be incorporated into the workplace.

GlobeSt.com: As millennials yourselves, you have a unique perspective on office user demographics. Tell me about the contrast between the millennial generation and the baby boomer generation, and how you find balance between the two.

Choi: Millennials identify with the young entrepreneur who started a business in a garage and is now the CEO wearing jeans in a brick and timber warehouse; millennials are less formal and prefer less organizational hierarchy. Millennials early in their lifecycles prefer more urban-like environments where lifestyle amenities are onsite or walkable.

Baby boomers are just approximately as large of an office cohort as millennials so striking a balance between generations is critical. Baby boomers prefer more private space, so we plan for a balanced mix of personal and shared spaces based on the work style and company culture of our target tenants, instead of gearing towards a particular demographic. Our office design reflects the employees' personalities. We recognize that not all jobs are collaborative, and we appreciate that window offices are still important milestones in certain industries.

The main similarities we have found among office users from any generation is that employees seek greater transparency, enhanced dining options, and a choice in the type of workspace best suited for the particular task at hand.

GlobeSt.com: The multifamily market was clearly the strongest sector after the downturn, but the office sector has really started to rebound in the last year. Where do you see the office sector over the next year, and what are your year-end goals for the company?

Choi: It is an exciting time to be in the office market because there is a lack of available product in Southern California that create the work lifestyle that is in high demand. Because the office market in Southern California has lagged, we are seeing lots of opportunity to re-purpose or re-position buildings whose occupancies have not yet recovered. Our year-end goal is to make investments in Los Angeles, Orange, and San Diego counties.