ANAHEIM — Targus is moving its corporate headquarters across the street and reducing its space by more than half as it adjusts to hybrid work and higher rents.
The company, known for making backpacks and laptop bags, signed a five-and-a-half-year lease with BentallGreenOak for an 84,000-square-foot space at Anaheim Concourse, a Class A industrial business park at 1206 N. Miller St. in Anaheim.
The company is moving from its longtime headquarters at the 200,000-square-foot Anaheim Technology Center, located across the street at 1211 N. Miller St.
The company had been at that location since December 1998, housing 175 employees, CoStar records show.
CBRE Executive Vice President Sean Ward, along with Brian DeRevere and Ryan Peterson, represented both Targus and BentallGreenOak in the transaction.
Targus did not respond to the Business Journal’s request for comment.
Company ‘Right Sizing’
The move continues to highlight a growing shift across Orange County’s industrial and office markets, as many companies are reevaluating how much space they truly need in a world of hybrid and remote work.
While asking rents have recently eased from record highs over the few years after the pandemic, Ward told the Business Journal that many tenants are still paying significantly more than they were just a few years ago, prompting them to closely examine their real estate costs.
“Companies are forced to really scrutinize their footprint and how they’re using space just because it’s trading at such a premium,” he said.
At the same time, companies want “newer, higher-quality facilities” that help them work more efficiently.
Ward said that tenants in Orange County still prefer modern industrial buildings with up-to-date features.
“The trend for upgrading facilities is real,” he said. “Most of the requirements in the market right now are for as new a building as you can have with the highest specs you can have.”
According to CoStar, despite Anaheim’s industrial market posting a 10% vacancy rate, there’s still strong demand for modern Class A space. But as Ward points out, the historical run-up in lease rates during the pandemic is still catching up to local businesses.
“Rents have more than doubled since five years ago, even when they’ve come down off the peak,” Ward said. “It’s tough for most companies. They really start to scrutinize how they’re using their space.”
Targus’ Relocation
For Targus, the relocation wasn’t about cutting jobs, Ward said.
“They have not reduced their employee headcount at all, but they work from home and hybrid work is a real deal, so they just didn’t have as many people coming into the office,” Ward said.
Instead, the company focused on improving its warehouse operations.
Ward said Targus got rid of excess inventory, installed tighter racking systems and moved into a building with 32-foot ceilings, allowing them to store more products in less space.
“They upgraded buildings, downsized the footprint, got more efficient,” he said.
Anaheim Concourse, built in 2014, also has a fast-response sprinkler system, a secure truck court, and easy freeway access.
Ward said Targus looked at other locations in Orange County, including one in Fullerton, but staying in Anaheim made the most sense.
“This building was right across the street from them and was compelling from that standpoint because it wouldn’t interrupt or disrupt any of their employees,” Ward said.
