Gateway has been looking for new headquarters since the beginning of the year and was lured by lease rates in Poway up to one-third less expensive than the UTC/Eastgate Mall area, a broker knowledgeable about the deal told GlobeSt.com. Studley and Gateway officials declined to release the financial terms of the long-term lease it signed in Poway.
"The location was chosen because of its combination of access to (Gateway's) current employees, future employee base and the price differential," the broker says. "A lot of corporations have gone that route as the cost of housing and other essentials has gone up."
Gateway was represented by the Los Angeles office of Julien J. Studley Inc. The Studley team consisted of managing director Jeff Lasky and executive vice president Seth Dudley, managing director and executive vice president of Seth Dudley, executive vice. Building owner Parkway Centre Four Investors, a partnership headed by McMillin Commercial, was represented by Mickey Morera of Burnham Real Estate Services.
In making the move to increase operating efficiency, the company cut its space requirement by more than 42,000 sf, from its existing three-building, 182,120-sf site to about 140,000 sf. The company also plans to transfer employees from the Lake Forest area of South Orange County to the Poway site.
Gateway previously occupied 180,000 sf in three buildings for its UTC headquarters and 285,000 sf in five buildings for its Business Division headquarters in Lake Forest. At Parkway Business Center, Gateway joins fellow technology tenants Applied Micro Circuits Corp. and Cohu Inc. Gateway has been at the UTC site since signing its lease in 1998. Companies such as Nokia Inc. and Home Depot have moved from the coastal area to Poway over the last year for the same reason.
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