Nature's Best signed an eight-year sublease for 27,226 square feet at 6 Pointe Dr., while Apollo Hospitality Group signed a 26,589-square-foot sublease for a seven and a half years, according to Tom Abel of CB Richard Ellis, who represented the sublessor in both deals. The sublessor was not named, but the building at one time was occupied by ResMAE Mortgage, a subprime lender.
Abel, noting that Beckman Coulter recently signed an 88,664-square-foot headquarters lease at 4150 North Palm and Raytheon signed for 78,000 square feet at 120 S. State College Blvd., says that the spate of leases demonstrate the momentum building in Brea's office market.
The leasing momentum is "fueled in large part by the availability of quality office space at rents that are lower than the county average," according to Abel. The overall monthly average asking lease rate for the approximately 100 million square feet of office space in Orange County declined by eight cents to $2.60 per square foot per month, full service gross, according to the third-quarter market survey by CB Richard Ellis. Class A asking rental rates decreased to $2.88 from the $2.98 per square foot in the second quarter, class B rates dipped by nine cents to 2.34 and class C properties decreased three cents to $2.04 per square foot.
The 6 Pointe Dr. building totals nearly 132,000 square feet on five floors, all of which has been on the market for sublease, Abel notes. He says that the two new leases there illustrate that, "High quality sublease space is available at lease rates that are enticing enough for tenants to make long-term decisions at a time when tentativeness and caution are common theme for office users." Cushman & Wakefield's Rick Sherburne, Travis Boyd and Alex Hayden represented Nature's Best, while Lee & Associates' Scott Seal represented Apollo.
In the 3161 Michelson Dr. lease in Irvine, the law firm of Jones Day signed for approximately 55,000 square feet in a lease with landlord Maguire Properties of Los Angeles. The REIT says that the law firm is expected to occupy the space in the third quarter of 2009.
The 3161 Michelson building is a 20-story, 531,000-square-foot tower at Maguire's Park Place development, a 105-acre mixed-use office, residential and retail project. Jones Day was represented by Royce Sharf in Studley's Orange County office, with Maguire represented in-house by Peter Johnston and John Bendetti.
Terms of the Jones Day lease were not disclosed, and no current information was available on asking rates at 3161 Michelson. At the time of Maguire's annual report in February, the 3161 Michelson building was 32.4% leased at annualized rents of $29.49 per square foot.
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