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Thursday, Mar 30, 2023

Broadcom’s Losses are Others’ Real Estate Gains

The relocation and subsequent downsizing of Broadcom Inc.’s Irvine operations continues to be a source of opportunity for other area firms.

Last week’s print edition of the Business Journal detailed a sublease for roughly 39,000 square feet at the new Five Point Gateway campus by Advanced Sterilization Products (ASP), whose operations in Irvine are now approaching 150,000 square feet.

ASP makes disinfection and sterilization products for hospitals; its products are being used to clean in-demand N95 masks for healthcare workers dealing with the corona- virus. Its new space is for part of the top floor at 15101 Alton Parkway, one of two area buildings used by Broadcom.

It’s the first reported sublease for Broadcom at Five Point Gateway, but perhaps not its last; brokerage materials indicate the chipmaker listed some 61,000 square feet of its space at the campus—a full floor at one of the two buildings it now occupies—for sublease several months back.

1M to 664K

The 73-acre Five Point Gateway is about 1 million square feet. It was originally built just for Broadcom, but the company scaled back its plans following a $37 billion sale in 2016 to Singapore-based Avago Technologies.

Prior to moving to the new campus, Broadcom sold the campus for $443 million to developer FivePoint Holdings LLC (NYSE: FPH), and leased back 641,000 square feet.

Broadcom’s former campus at Irvine’s UCI Research Park, at one point topping 800,000 square feet, has since been turned into a multitenant campus; owner Irvine Co. indicates most of that space is now spoken for, with new and expanding tenants including Acorns, Skyworks Solutions Inc. and UCI Beall Applied Innovation.

The chipmaker’s local operations are now estimated at about 1,600 people. Five years ago that employment count was closer to 3,000.

Top Office Tenant

Broadcom was long OC’s largest office tenant, but that title now goes elsewhere.

Both Edwards Lifesciences Corp. (NYSE: EW) and Blizzard Entertainment Inc. have area operations topping 600,000 square feet, according to brokerage data and Business Journal research.

Medical device maker Edwards will soon occupy north of 1 million square feet at its Irvine headquarters along Red Hill Avenue, following the company’s $240 million campus expansion currently underway.

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