IRVINE, CA—There are some really good things going on in Orange County's office market. That is according to Robert Caudill, a regional director in the O.C. office of Colliers International, who served as moderator in the development panel at RealShare Orange County on Tuesday.
Caudill joined panelists—and the nearly 700 in attendance—to discuss the Orange County office market and some key projects in the works. He pointed out that vacancy rates continue to decline with the overall market at 13.6%, but he said that about 4% of that isn't really leasable space. He also noted that absorption continues to move up, construction is up and rental rates continue to climb—up 12% this year alone.
The conversation next moved to new types of office product in the market. Steve Batcheller, a partner with Panattoni, said he is trying to introduce a new crossover product called “creative industrial,” where his firm is bringing the open feel with high ceilings and more to an ultra-high-end industrial product, something he said has “really struck a chord.” He said that the office market is on fire, but the industrial market is “crazy,” with about 2% vacancy. “It is a great time to be an owner and seller, but a tough time to be a buyer of property…it is tough to buy land,” he said.
A focus for Aaron Hill at Bixby Land Co. is taking existing older office project, which is less dense, and generally one to two-story buildings and converting it into space that fits today's workplace and demands. “There is demand for that,” he says. “It also gives you the ability on these larger sites to create functional outdoor amenity spaces.”
And while it isn't an inexpensive proposition, Hill says (the firm spends roughly $80 per square foot), they are left with “differentiating product.”
Parke Miller, EVP with Lincoln Property Co., noted that tenant's tastes have refined over time. His firm has created a concept called the today tomorrow theory, which consists of basic principles to help the firm stay aligned with its overall values and goals. They are as follows:
TRANSFORMATIVE: Product has to not only meet the needs of tenants needs today, but need to accommodate the future given the radical rate of change.
AUTHENTIC: the most engaging spaces offer something unique and special. INSPIRATIONAL: if you think about places you have been in your life that have been inspiring… inspiring spaces engage and uplift.
COLLABORATIVE: a buzzword used a lot today. Popular and deservingly so, he says. The state for collaboration must allow for fluid frequent and spontaneous interaction.
FLEXIBLE: one size does not fit all. “We are seeing all tenant industries show progression. Everyone is going to a modern day office so you have to build product that can function for those users.”
DEFINING: intelligent planning offers a powerful way to establish presence.
The RealShare Conference Series is produced by ALM's Real Estate Media Group, which also publishes Real Estate Forum and GlobeSt.com.
Continue Reading for Free
Register and gain access to:
- 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
© 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.
Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
