Commercial real estate circles are buzzing about the prospect of a big lease by a tenant on the frontlines of the financial crisis.
Real estate sources say a federal entity is looking at leasing office space in Irvine, possibly taking 250,000 square feet at one or more buildings in the Irvine Spectrum or around John Wayne Airport.
Such a deal would be twice as big as any office lease signed here in the past two years.
The buzz is just speculation at this point. If it proves true, you can thank the government’s bailout of the financial industry.
Exactly which entity may be looking for space is unknown. Some speculate it could be the Federal Deposit Insurance Corp.
The FDIC is expected to play a leading role in the rescue plan. Moves so far include backing debt issued by banks and thrifts and expanded deposit insurance. The agency could play a role in the government’s plan to invest in banks and thrifts.
If a lease is realized, it could be the first national example of the federal government adding people to handle the ongoing financial crisis. A business taking up 250,000 square feet of office space could comfortably hold 1,000 workers, if not more.
Any hiring would be a welcome addition to Orange County’s slumping economy, not to mention the area’s battered financial services industry, which still is reeling from last year’s implosion of the subprime mortgage industry.
Local buildings said to be possible locations for the lease include Irvine Company’s 40 Pacifica tower in the Spectrum, which is being kept empty by the Newport Beach-based landlord until a big tenant is found for the 310,000-square-foot tower.
Empty space in Los Angeles-based Maguire Properties Inc.’s Park Place campus near the airport also is rumored to be a possible site.
For more on this story, see the Oct. 20 edition of the Business Journal.
