Fast-growing chip maker Broadcom Corp., already one of the larger tenants in the Irvine Spectrum, is looking to boost its presence in the tech-dominated industrial park by as much as half.
Broadcom, which already occupies 230,622 square feet in the Spectrum, has signed a five-year lease for 54,740 square feet more and plans to take an additional 50,000 square feet in the near future. Broadcom is taking space in the Irvine Spectrum’s Discovery Business Center near its current headquarters. The value of the deal was not released. Broadcom is scheduled to expand into the new buildings in November.
The maker of chips for cable modems and computer networks is expanding rapidly. Broadcom ranks No. 2 on this week’s Business Journal list of the fastest-growing companies, going from $23 million in sales in 1997 to $735 million for the 12 months through June. Since January 1999, Broadcom has made or announced 13 acquisitions, including eight so far this year. Since May alone, the chip maker has made five deals worth nearly $3.8 billion. The company’s new space is about a half-mile from its corporate headquarters, the former AST Research Park, which developer The Irvine Company reacquired and has leased out to Broadcom. The chip maker was looking for space closer to its headquarters, but could not find anything suitable, given the low vacancy rate in the Irvine Spectrum.
Irvine Co. spokeswoman Jennifer Smith said the expansion marks another step in the landlord’s increasingly close relationship with Broadcom.
“They’re such a huge corporate player on the Irvine Ranch,” she said. “Their expansion can only mean more good things for this region.”
Real estate sources said Broadcom likely will occupy another 50,000 square feet in the Discovery Business Center. Smith declined to comment specifically on any additional space Broadcom may occupy, but did say, “We’re delighted to help them at every stage of their growth. If they have further expansion needs, I’m sure we will do our best to accommodate them.”
The Discovery Business Center is the Irvine Co.’s latest addition to its sprawling 5,000-acre Irvine Spectrum development. The Discovery Business Center currently includes eight buildings totaling 430,000 square feet, of which 187,075 square feet are available. (See related story, Page 3).
Kim Josephson, of RealTec, represented Broadcom in the lease negotiations, while the Irvine Co. represented itself. n
