Irvine Co. said that a new office leasing program it launched pre-pandemic with shorter lease terms for tenants is seeing robust demand.
The Newport Beach landlord’s Flex Workspace program, launched in 2019, offers turnkey workspaces with shorter-than-normal lease terms, running as little as six months.
The landlord said it has leased about 750,000 square feet in flexible leases over the past year.
The recent deals have included fintech, finance, technology, and medical device companies at Irvine Co. properties in Orange County, Los Angeles and San Diego, it said.
Irvine Co. is the state’s largest office landlord. It oversees a 53 million-square-foot portfolio, a bulk of it in OC.
“Although we created Flex Workspace before the pandemic, it has understandably become a popular option for companies who desire flexibility as they transition back to the office,” said Steve Case, executive vice president of Irvine Co.’s office division.
Demand for Flexibility
The program was launched two years ago as a flexible office product that expanded and replaced the firm’s prior ReadyNow suites program.
Though the offices are similar to the coworking model, they’re not the same—tenants using Flex Workspace will have their own dedicated spaces, and not share their office space with others.
Local companies using the flex option for their recent deals include Newport Center-based luxury jeweler Lugano Diamonds; Chargezoom, a fintech software startup now at the Irvine Towers complex near John Wayne Airport; and commercial real estate firm Avison Young, which now counts space at Jamboree Center in the airport area.
“The pandemic led us to reshape how we view our office space, and we decided we wanted flexible leasing options in Irvine and West Los Angeles to accommodate our continued growth, as well as support our collaborative workplace strategy,” said Chris Cooper, Avison Young principal and Southern California regional managing director.
Irvine Co. said the increasing demand for the model is resulting in it adding an additional 10,000-square-foot floor of flex space at Innovation Park, the new low-rise office park it is now in the early stages of leasing in the Spectrum area of Irvine.