Rick Kaplan Kaplan: “The one thing about our market is that there are not a lot of big spaces constructed—it’s mostly multi-tenant office.”

IRVINE, CA—If workers are giving up private offices in favor of open-plan collaborative space, that space needs to offer amenities that keep them engaged, Rick Kaplan, vice chairman within Cushman & Wakefield of California Inc.’s brokerage group, tells GlobeSt.com. With the Press in Costa Mesa, CA, continuing to progress in its renovation into creative space for larger companies, we spoke exclusively with Kaplan, who is handling leasing for the property, about what tenants are seeing in larger workspaces.

The Press park Renovations to The Press include the addition of a three-acre park offering a variety of outdoor amenities for tenants.

GlobeSt.com: What do tenants, especially tenants looking for larger spaces, want in in a workspace?

Kaplan: There’s been an evolution in office space. back when I started, it was private, perimeter offices with doors and no glass. You went into your office and closed your door. Then, in 2007 through 2009, there came a need from Silicon Valley—the Googles, Intels and Apples of the world—for people to be in a more collaborative area. They wanted an open environment with lots of light so they could hear people on the phone and talk to each other—an open plan vs. closed offices. Then, the move to benching of workstations happened.

In addition, people wanted amenities. They figured, “If I’m going to work a lot of hours in a common work area, I need huddle rooms for private conversations or small team meetings.” Gyms and food service, which also came from Silicon Valley, emerged, with the idea being that if you keep folks in, keep them engaged and provide food (in some companies like Google, for no cost), they’ll stay. That’s how you build camaraderie; that’s the evolution. It’s accretive to larger tenants—as opposed to smaller offices where one person wears five hats—that you need to retain people because it’s time consuming to keep going through the hiring process for the same position.

Also, public companies need to provide profits for their shareholders and have discovered that they can put more people in less space in a denser environment and cut their leasing costs. So, when you add in the amenities, you keep people in so they’re more productive, it’s more efficient so they lease less space, which lowers the cost of real estate occupancy—it’s a win-win.

The Press interior The Press will feature modern, open, collaborative space with lots of natural light.

GlobeSt.com: What are the challenges associated with leasing larger spaces, especially in more suburban settings?

Kaplan: There are fewer of these larger tenants in Orange County, where the average tenant leases about 3,500 square feet. There are fewer prospects, so there are fewer opportunities. The Press is a 300,000-square-foot building—it’s a large floorplate, so you need a larger tenant to fill the space, and there are fewer of those tenants to fill the space. The one thing about our market is that there are not a lot of big spaces constructed—it’s mostly multi-tenant office.

GlobeSt.com: How does the surrounding area (and its amenities, quality of life, etc.) impact leasing conversations, specifically for tenants looking to create campus-like offices?

Kaplan: Whether it’s an urban or suburban setting, what’s critical is that within a short drive, walk or bike ride, you can get to amenities. With the Press project, we have SOCO, which has a lot of amenities. The LAB Anti-Mall and the CAMP are very close. There’s South Coast Plaza for higher-end amenities, and Metro Pointe is down the street. Costa Mesa is very well positioned with amenities, and it creates a “cool” factor. Within the city of Costa Mesa, there are a lot of options for clients that are walkable, and there’s a bike borrow system, too.

As for within the Press itself, this is a unique building—it’s hard to create this. There will be a three-acre park that offers lawn bowling, a yoga studio and other features. You can have shade if you want and sun if you want.

GlobeSt.com: What trends are you seeing in office leases in Orange County?

Kaplan: We’re seeing higher ceilings and open plans and amenities like we talked about, plus better A/C systems and wellness programs.