By ALLISON SCHNEIDER
The Orange County office market is ripe for development, with 14,000 office jobs expected to be added this year while vacancy in the sector hovers at 6%.
While there is more than 3 million square feet of proposed office projects in OC, only Impac Center on Jamboree Road in Irvine is on track to open soon to tenants.
Impac Center will include an upscale restaurant and an Equinox fitness center when it is completed.
While traditional high-rise office space will continue to be built in OC, developers now are including more features such as retail and hotels, among others, in their developments.
This trend primarily is a factor of the popularity of mixed-use projects around the U.S. These developments that include non-traditional amenities create a desirable sense of place for corporate tenants.
The 1.8 million-square-foot Summit Office Campus in Aliso Viejo is an example. The campus has serene landscaping as well as shops, restaurants, entertainment and homes nearby that range from oceanfront property to more affordable apartments.
This type of an integrated environment continues to attract corporate America. Pacific Life Insurance Co. recently signed a deal with Summit landlord Parker Properties LLC to buy 5.5 acres at the campus. Parker Properties is set to build the insurance company a 200,000-square-foot building.
Parker Properties and financial partner RREEF also are building out the next phase of development at the Summit Office Campus.
Two four-story class A office buildings designed by McLarand, Vasquez, Emsiek & Partners totaling 260,000 square feet are under construction at the campus.
Asking rents at the Summit buildings under development are expected to be higher than $3 per square foot, full service gross, due to high land prices and the escalating costs of construction.
Parker Properties’ two buildings under construction will be joined by a 274-room hotel and 65,000-square-foot sports club developed by Renaissance ClubSport.
The office complex also will include restaurants overlooking water and lush landscaping.
Other high-rise office space in the works in OC includes Opus Center III, Hines Crescent’s 2211 Michelson, Maguire Properties’ Park Place high-rise and The Irvine Company’s Irvine Center Towers and 14-story Spectrum towers.
The future of OC’s office market looks bright.
While there still is strong demand for traditional high-rise office space, the emerging trend of coupling office campuses with restaurants, hotels and other elements is becoming increasingly popular with companies.
Schneider is an associate in the Newport Beach office of CB Richard Ellis Group Inc.
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