The owner of Costa Mesa’s three most prominent office towers is switching up its leasing strategy for the first time in more than 20 years.
C.J. Segerstrom & Sons has brought aboard brokerage Cushman & Wakefield Inc. as the exclusive leasing agent for Plaza Tower, Center Tower and Park Tower, the three high-end offices that sit across the street from the South Coast Plaza shopping center.
The three buildings total more than 1.2 million square feet. They have a slew of law firms as tenants, including Latham & Watkins LLP; Sheppard Mullin Richter & Hampton LLP; and Dorsey & Whitney LLP.
The largest tenant is accounting firm Deloitte, which is reported to lease about 100,000 square feet at Park Tower.
“The office properties within the complex are an impressive collection, with some of the most prestigious professional firms and tenants in the market,” said Rick Kaplan, a vice chairman in Cushman’s Irvine office.
“We look forward to the opportunity to build on that tenant base,” said Kaplan, who along with colleagues Robert Lambert and Matt Moore will market the properties and represent the landlord in lease negotiations.
It’s the first time since 1990 the three offices—which are owned by affiliates of the Segerstrom family—have used an outside leasing service, according to Cushman.
In-House
Until the change, leasing had been handled internally through the Offices of South Coast Plaza, the office division of C.J. Segerstrom & Sons.
A reason for the change was not disclosed.
Each of the three buildings appears to have its share of available space. CoStar Group Inc. records show Plaza Tower, the 460,852-square-foot office building designed by Cesar Pelli, as being about two-thirds occupied.
The 21-story Center Tower, a 462,191-square-foot office that is OC’s tallest building, is listed as being 76% occupied, while the 338,070-square-foot Park Tower is listed by CoStar as 85% occupied.
The overall vacancy rate for offices in Costa Mesa is about 16.5%, according to recent brokerage data.
Real estate industry sources said the three buildings are seeing more competition for tenants from Pacific Arts Plaza, another office complex in the area.
Newport Beach-based Irvine Company bought the 827,000-square-foot Pacific Arts Plaza in 2010, and it recently completed an extensive renovation of the 18-acre campus.
Pacific Arts Plaza faces its own leasing challenges.
Hyundai Motor America has been leasing about 150,000 square feet at the complex’s building at 3200 Park Center Drive under a short-term deal, but the company will vacate that space and move operations back to Fountain Valley next year when its new headquarters are completed.
