TUSTIN, CA-Balboa Instruments Inc. has signed an $8.9-million lease for space in an industrial flex building that serves as the company's headquarters and a manufacturing operation, according to GVA Daum. The 120,00-sf deal is one of the largest R&D leases in the market in the past year.

The Balboa space is at 1382 Bell Ave., according to VP John Rothwell in the Newport Beach office of Daum. Balboa, one of the world's largest manufacturers of electronic control systems for the spa industry, has signed for seven years at the building.

In addition to serving as a corporate headquarters and manufacturing facility, the flex building also serves as a distribution facility for Balboa, which was represented by Rothwell. The building owner is C2H2 Ltd., which was represented by Michael Hartel of Colliers International.

Balboa's product line includes custom electronic solid state controls and related equipment for hot tubs, pools, spas, whirlpool baths and saunas. The company was founded in 1979.

The Balboa lease underscores the strength of both segments of the Orange County industrial market, brokers say. The two segments include R&D and the more traditional manufacturing and distribution space.

Orange County has one of Southern California's largest R&D markets, with about 68 million sf to 70 million sf of the county's industrial space classified as R&D, according to statistics from several brokerage houses. Rates for flex space rose about 5% in the past year, according to market reports, finishing the year at about $1 per sf per month.