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Hyundai Leases 4-Acre Facility for Research

The research and development division of Hyundai Motor Group (HMG) signed a large industrial lease at a warehouse under construction about two miles east of the Irvine Spectrum Center.

Hyundai America Technical Center Inc. (HATCI) inked a lease for 91,600 square feet at LogistiCenter at Irvine II, per CoStar data. The single-level warehouse on 4.41 acres is located at 2 Sterling in Irvine. Hyundai plans to move into its new space in May.

CoStar data shows the lease runs through May 2037, with Hyundai America Technical Center occupying the entire space.

LogistiCenter at Irvine II features 8,200 square feet of office space, 36-foot clear heights, 11 dock-high doors and 74 parking spaces.

Hyundai Motor America’s headquarters is in Fountain Valley.

Hyundai American Technical Center
Hyundai Motor Group established its technical center in 1986, with the first location in Ann Arbor, Michigan. Hyundai American Technical Center is the motor group’s design, engineering and technology division for North America.

“HATCI supports new model development for HMG’s North American operations and global programs from our dedicated engineering facilities and support staff at affiliate sites located throughout the United States,” per the technical center’s website. “HATCI’s success in satisfying the demands of increasingly sophisticated consumers is a direct result of HMG’s commitment to the future of American automotive engineering.”

The technical center’s headquarters is a 220,000-square-foot building in Superior Township, Michigan.

Hyundai also has a research lab in Chino, a Kia Design Center at 101 Peters Canyon Road in Irvine, a proving ground in California City and a 90,000-square-foot design and engineering center at 81 Bunsen in Irvine.

Orange County’s Industrial Market Outlook

Cushman & Wakefield, in its most recent report on the sector, found Orange County’s industrial market experienced in increasing vacancy rates for eight consecutive quarters.
“Ongoing issues, such as trade disputes and persistent supply chain disruptions, are expected to sustain cautious and risk conscious behavior among market participants as they navigate uncertainty in both global and local markets,” per the Cushman & Wakefield report.

The report also noted that softening demand for space means construction of speculative industrial developments are likely to slow down during the first few months of 2025.

Colliers’ report for the Orange County industrial market showed the sector “experienced a sharp increase in vacancy” last quarter, reaching 3.9%, the highest level in five years.

Major leases signed or renewed during the fourth quarter of 2024 included Hampton Products at 50 Icon in South County (307,781 square feet), Adient Aerospace at 5701 Skylab Road in Huntington Beach (280,460 square feet) and Weber Logistics’ distribution center taking up 136,998 square feet at 15967 Alton Parkway in Irvine.

Orange County’s industrial market, per Colliers, is home to 240 million square feet of warehouse and distribution space, a 14% share of the greater Los Angeles market.

“The market includes many mid-sized manufacturers and distributors from a wide array of industries, including information, technology, electronics, food, apparel and communications,” according to Colliers. “These firms pay a premium to be in the midst of Orange County’s highly educated labor force and concentration of high-end firms and distributors.”

Dermody Properties

2 Sterling is owned by Reno, Nevada-based Dermody Properties Inc. The property was marketed by CBRE and is located next to LogistiCenter at Irvine I, a 133,320-square-foot industrial building on six acres.

LogistiCenter at Irvine I, also owned by Dermody and also under construction, is slated to open later this year. Leasing information for the building has not yet been disclosed.

Dermody was founded in 1960 and has acquired or developed about 110 million square feet of logistics and industrial buildings. The company’s headquarters is in Reno, with regional offices in Southern California, Northern California, Atlanta, Chicago, Dallas, New Jersey, Phoenix and Seattle.

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Parimal Rohit
Parimal Rohit
Parimal M. Rohit has nearly two decades of experience in journalism and recently covered Texas real estate for CoStar News and Austin Business Journal. He was also the editor of The Log, covering Southern California's and Northern Mexico's maritime and environmental spaces. Throughout his career, Rohit has also covered the Los Angeles Lakers, Los Angeles Dodgers, Bollywood and California politics. Rohit won 12 reporting awards from the San Diego Press Club, including best environmental reporting and best essay/commentary, and the Fort Worth chapter of the Society of Professional Journalists. His hobbies include photography, podcasting, travel and filmmaking. He is also the recipient of several fellowships, including one through the USC Annenberg Center for Health Journalism and another through the RK Mellon Foundation.
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