The Irvine Co. believes that major investments in its extensive office portfolio across the country in the past year are paying off, with strong leasing activity and occupancy rates that far outpace the national average.
The Newport Beach-based landlord, whose commercial portfolio tops 54 million square feet of office space in California, Chicago and New York City, said it closed its 2024 fiscal year at over 90% leased.
The firm, the largest owner of office space in both Orange County and the state of California, also said it totaled 10.4 million square feet of leases over the last 12 months, which is a nearly 12% increase in square footage compared to the 2023 fiscal year.
The firm notes that these results outperformed the U.S. office market by 10%.
Renewals made up 6.9 million square feet of those lease deals, it reported.
$200M NYC Spend
Irvine Co. spent heavily to achieve those results.
Over the past 12 months, the landlord said it invested more than $560 million of capital across its portfolio, covering reinvestment and operating capital, workspace improvements and amenity offerings.
The largest amount of spending was directed towards Irvine Co.’s largest property in its office portfolio.
It said it spent $200 million at the MetLife Building at 200 Park Avenue in NYC, a 3.1-million-square-foot skyscraper that the firm recently bought out the remaining minority stake, to assume 100% control in the building.
“The decision to purchase the remaining minority interest in the building supports Irvine Co.’s long-term ownership approach and continued investment in its premium workplaces,” the company said in a statement.
Local Leases
“Our fiscal year results show there is significant demand for premium office space and highlight the importance of choosing not only where your company works, but who your landlord is,” Roger DeWames, president of Irvine Co. Office Properties, said in a statement.
“With Irvine Co.’s financial strength and stability, we’re able to invest in our workplaces, offer our customers flexible lease options and provide the workday experience that companies and their teams want and succeed in.”
Notable office deals the landlord signed in OC over the past year include leases for retailer Boot Barn Inc. (NYSE: BOOT) at Spectrum Terrace, accounting firm Armanino LLP at 400 Spectrum Center and go kart chain K1 Speed at Irvine Towers.
