Mitsubishi has been in the office/flex building on Jeronimo Road for seven years and wanted to review relocation alternatives in addition to considering a renewal, according to Studley. The electronics firm had a little over 18 months remaining on its previous lease.
Terms of the deal were not disclosed, but Studley says the new lease included a competitive rental rate and a lease restructuring that provided additional concessions for Mitsubishi that were not part of its previous lease. Since terms were not disclosed and the deal involves a combination of office and industrial space, industry sources say that estimating the value of the deal is especially difficult.
Average asking office rental rates in Orange County have climbed to a new high of nearly $2.30 per sf per month recently, and industrial rates have been firming too. But Yasushi Moriyama, EVP of planning for Mitsubishi Digital Electronics America, says that the new deal reduces the company's operating expenses.
Mitsubishi was represented by Demetri Koutrouvelis and Laurent Myers of Studley's Washington, DC office along with Michael Props and Jeff Cannon of Studley's Orange County office. The landlord, the Irvine Co., was represented in-house by Sue Lyle.
Mitsubishi Digital Electronics America manufactures and markets high definition projection televisions, HD LCD televisions, and plasma displays, as well as VCRs, DVD players, an HDTV receiver/controller and related products for home theater systems.
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