The two floors that Tetra Tech will occupy Nov. 1 represent 68,484 sf of the three-story, 115,000-sf office building. The second phase also includes a newly constructed 435-stall parking structure on the campus' northeast corner. The $65-million building offers enhanced training and conference facilities. The new corporate headquarters will support Tetra Tech's growth while keeping the company firmly rooted in Pasadena.
The deal is significant for Pasadena considering that the first quarter 2002 marked the sixth consecutive quarter during which overall office vacancy rates escalated n the Tri-Cities, more than doubling during that time from 6% to 12.7%. Pasadena's office vacancy rate rose from 14.2% to 15.6% as 173,227 sf of negative absorption bruised the submarket, according to a recent report by Cushman & Wakefield.
"The office leasing market has been flat," admits David Simon, partner of Kearny Real Estate Co. and in charge of the Pasadena Corporate Park project. He adds that the project is attractive because it's the right product type for the market. "It's a big open space, which attracts even in a tough, deteriorating market."
Tetra Tech, Inc. is a privately traded management and technical services consulting firm. The company has more than 6,000 employees worldwide. Its current headquarters is located at 670 North Rosemead Blvd. in Pasadena. It will relocate from this site, where it has been for more than 20 years, to the Pasadena Corporate Park. With four properties in Pasadena, Tetra Tech will be consolidating all its local employees into the one location.
"It's a great opportunity to consolidate for Tetra Tech," notes Todd Doney of Insigna/ESG, who handled both sides of the transaction. "The project offers large, efficient floors, abundant free parking and is off the entrance/exit ramp to the 210 freeway, plus it's across the street from what will be the end of the Gold Line mass transit system."
The Pasadena Corporate Park is a 260,000-sf low-rise suburban office campus. It was awarded the Southern California Development Forum's grand prize in 2000 for its adaptive reuse of a former obsolete office and industrial complex. The site is located at the intersection of Foothill Blvd. and Halstead.
The first phase of the development was a 141,800-sf office building. It is currently the headquarters for mortgage banking firm IndyMac. That company signed a 10-year lease for $38 million to occupy the entire building immediately upon completion of the construction in July 2000. The project has entitlements for an additional 100,000-sf phase.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
