P’s & Q’s: Panasonic, Quiksilver Lease 761,000 SF

Panasonic Building

ORANGE COUNTY, CA-Two companies have signed corporate headquarters leases for a total of 760,871 square feet in two of the largest deals in the county in some time. Panasonic Avionics Corp. expanded its corporate headquarters by signing a 10-year lease for 354,727 square feet in Lake Forest that commences in 2012, and Quiksilver Inc. renewed leases for 406,144 square feet at Sares-Regis Group’s West County Commerce Center in Huntington Beach.

Panasonic’s lease will include six buildings that house the company’s corporate, engineering, production and administrative operations, according to Yasu Enokido, president and COO of Panasonic, which was represented by Studley in the transaction. As part of the renewal agreement, Panasonic received significant capital contributions to update critical facilities and building infrastructure as well as flexible expansion, contraction and renewal rights. Enokido said that the new lease will “provide for the upgrades and expansion space required to meet the needs of our growing company without disruption to our business and employees.”

Quiksilver Headquarters

According to Royce Sharf, EVP and branch manager for Studley, the company “pursued all viable opportunities, including relocating to Irvine, before committing to the lease renewal.” He described the deal as “economically compelling, capturing rental rates commensurate with this historically favorable tenant’s market, while ownership—which included Bixby Land Co., Piedmont Office Realty Trust, the Abbey Co. and ING—benefitted by securing the a key anchor tenant well into the future.”

David Heath, VP of global human resources for Panasonic, noted that the company and Studley worked in tandem with Panasonic’s Global Facilities Management and Real Estate department, which is headed by Keith Myers. Piedmont was represented by John Harty of Voit, and the other three owners represented themselves.

In Quiksilver’s leases, landlord Sares-Regis Group reports that the agreements provide the apparel and accessory company with approximately 400,000 square feet of office and warehouse space through 2024. The space leased by Quiksilver is at 5600 Argosy Ave., (223,406 square feet), 5600 Argosy Ave. (101,618 square feet) and 15202 Graham St. (81,120 square feet).

Quicksilver will create a new corporate campus for its three main divisions: Quiksilver, Roxy and DC. Bob McKnight, Quiksilver chairman and CEO, said that the company looked at several other Orange County sites, but his company’s long relationship with Sares-Regis Group “was a key factor in our decision to remain in the West County Commerce Center.”

John Hagestad, SRG managing director, commented: “Quiksilver is one of our longest term tenants, first moving to the West County Commerce Center in 1997. We have a substantial relationship with Quiksilver and worked diligently to keep them in place.” The West County Commerce Center is a development of more than one million square feet that SRG acquired the 28-acre site in 1997, subsequently redeveloping the property with new and rehabilitated buildings.

Quiksilver was represented by Rob Socci and Joe Miller of Voit Real Estate Services. SRG was self-represented by Vince Ciavarella, president of the company’s Commercial Property Services Division, and Michael Wood, director of leasing.