IRVINE, CA-L.A. Fitness and a Staples Office Superstore have signed long-term leases for more than 62,000 sf in deals valued at an aggregate of $10.4 million, according to CB Richard Ellis. The L.A. Fitness chain's lease, for 15 years, is a $5.2-million deal for 42,000 sf, while Staples inked a deal for the same amount of money for 20,550 sf for 10 years.
Both tenants signed for the space at the Woodbury Town Center at the southwest corner of Irvine Boulevard and Sand Canyon Avenue. The center is part of the Woodbury master-planned community and is a development of the Irvine Co., which was represented by James Duke, Jeff Moore, and Barclay Harty of CB Richard Ellis in both of the leases.
L.A. Fitness was represented by RealSource Partners, and Staples was represented by RL Pratt and Associates Inc. In a third deal at the same center, the CBRE team negotiated a lease with a 4,000-sf Carl's Jr. restaurant for 10 years for $1.8 million, with the tenant represented by the Floyd Co.
The new leases illustrate the strength of an Orange County market where "sustained strong demand for shop space resulted in an additional drop in the overall vacancy rate to 2.9%" in the first quarter of this year, according to the most recent market report by CB Richard Ellis. Redevelopment construction in some cities continues to take available retail space off the market while many tenants are now looking towards higher density, mixed-use developments, the report noted as factors in the decreasing vacancy rate.
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