By TED SNELL and ALLISON SCHNEIDER
The buzz in South County centers on the possibility of weakening fundamentals and a shift in favor of tenants with class A office space coming and a slight increase in vacancy from the fourth quarter.
But preleasing to tenants with strong credit and unwavering lease rates continue to show the vitality of the office market.
Nevertheless, competition still is substantial with some of the most financially stable and experienced office building developers vying for tenants.
In a market as strong and competitive as in OC, it is important to differentiate buildings to attract tenants. Leadership in Energy and Environmental Design certification has proved to be a means of differentiation, garnering attention from developers, financial partners, governments and tenants alike.
Parker Properties LP takes differentiation a step further with the next phase of the Summit Office Campus in Aliso Viejo. In the fifth phase of the 1.7 million-square-foot campus developed since 1996, Parker Properties and RREEF Funds LLC plan to provide one of the most unique office campuses in South County.
The two, four-story buildings totaling 260,000 square feet (which are in the process of LEED certification) are set to include outdoor people places, business bungalows with Internet access, connecting walkways, landscaping, water features, secure parking, interior lobbies and onsite dining.
The Renaissance Clubsport is under construction directly next to the office development at the corner of Aliso Viejo Parkway and Enterprise. This 174-room boutique hotel has 60,000 square feet of gym and spa space plus a restaurant.
Valeant Pharmaceuticals International recently moved from Costa Mesa to the Summit. Newport Beach’s Pacific Life Insurance Co. is expanding there.
Valeant has about 110,000 square feet. Pacific Life plans to take 242,000 square feet once its nine-story building is done at the start of next year.
Even with admirable competition and the reality of future unknown market dynamics, Summit should continue to attract Corporate America and successful entrepreneurs.
Snell is a senior vice president in the Newport Beach office of CB Richard Ellis. Schneider is an associate in the Newport Beach.
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