Complex Says AirTouch Space Attracting Plenty of Interest
Park Place Office Campus in Irvine has signed Caltrans to a lease extension that will expand the state agency’s space to about 206,000 square feet.
The new lease is the latest in a series of moves that Park Place has taken to lease up the space vacated last year by what had been its biggest tenant, Fluor, and to brace for the departure at the end of this year of another major tenant, AirTouch Cellular.
Caltrans previously took about 150,000 square feet at the complex vacated by Fluor Corp., which along with its Fluor Daniel subsidiary moved into new buildings in Aliso Viejo.
Winthrop signed ConAgra Grocery, formerly known as Hunt-Wesson Inc., to take 406,174 square feet in December. Those moves, as well as several other smaller deals completed at the end of 1999, left Park Place Office Campus with about 100,000 square feet of the former Fluor space vacant.
The Caltrans expansion reduces that figure to about 50,000 square feet remaining, according to Janine Padia, who is in charge of leasing for Winthrop Management at the campus.
Padia said that another large tenant has an option to take another 30,000 square feet, which could cut the vacant space in the complex to around 20,000 square feet available.
“But then we have the AirTouch space coming up at the end of the year,” said Padia. “But the good news is that we’ve had a lot of interest in the space that will be available.” San Francisco-based AirTouch will be vacating 190,000 square feet at Park Place to consolidate operations elsewhere in Orange County.
Although she wouldn’t disclose how much the latest lease deal is worth, local real estate brokers say that Winthrop has been asking around $1.85 to $1.65 a square foot for space.
Average rental rates in the airport area are going for more than $2 a square foot.
And many Class A buildings are fetching much more, according to local brokers.
As an older complex for years the home of one main tenant, Park Place has had to reinvent itself. Many real estate observers say that companies looking for space in newer buildings in the area use Park Place as a low-end “tire-kicker” to bargain cheaper rates in the market.
Padia bristles at characterizing her buildings as “low-end.” She argues the facility offers an alternative to other high-rise and campus settings in the airport area. Indeed, the large floorplates in Park Place, up to almost 52,000 square feet, have made the complex a sought-after site for companies needing a number of contiguous cubicles in one area.
At 1.8 million square feet of rentable space, Park Place offers six four-story buildings attached by a common atrium. The complex also has a 10-story tower connected by a single-story concourse area with a restaurant.
It is also surrounded by several restaurants and a theater. And a new 308-room Ritz-Carlton hotel is planned adjacent to the office complex. The hotel’s developers, Park Place Hotel Co., plan to begin construction in March. The developers are led by Bill Lane, who has been associated with Trammell Crow.
“We have a lot to offer at Park Place and activity has been very strong,” said Padia.
She added that Winthrop has not been cutting deals much under current asking rates. “The economy is strong and we’re well-positioned in the marketplace,” she said. “We’re not the only building with vacancies, but we have a different type of product to market.” n
