ORANGE COUNTY, CA—Ranking number 3 for rent growth in CBRE's Tech-Thirty report, Orange County should focus more on creating efficient spaces and keeping an eye on cost, given the recent appreciation in values, EVP Travis Boyd tells GlobeSt.com. The report, which analyzies the 30 leading technology markets in North America in terms of high-tech software/services job growth, revealed that office rents in Orange County increased 24.3% in the past two years, just behind Silicon Valley at 28.4% and Raleigh-Durham at 24.6%. The increase is in part buoyed by rising demand for office space from tech companies and young start-ups.
We spoke excluisvely with Boyd about the relationship between the commercial real estate market and tech comanies and how it could be improved even further.
GlobeSt.com: Your report shows that Orange County is #3 for rent growth. What is the real estate market doing to foster this tech relationship?
Boyd: The ownership and landlord community is creating and reinventing office space that truly aligns with the business desires of the tech organizations. I think the market is listening to the needs of tech clients as well as partners, and consultants are making sure owners of real estate recognize what our clients want and need to continue to be successful. Specifically, tenants are working with landlords to build out new space or re-design existing layouts with a focus on efficiency. The main improvements we are seeing across the board are more collaborative spaces and integration of natural light as well as the incorporation of wellness.
GlobeSt.com: What more could the market do to help this relationship grow?
Boyd: The market should focus more on creating efficient spaces and keeping an eye on cost, given the recent appreciation in values. Additionally, with a labor market as competitive as the one in Orange County, tenants need to be vigilant in making sure their workplace is designed in a way that helps attract and retain top talent. A great example of this thinking is Trammell Crow's the Boardwalk in Irvine. The project will arguably feature some of the boldest architecture in the area. The two towers will be connected by indoor bridges and outdoor terraces. The site will also have retail and restaurants, a fitness and wellness center, bicycle storage and more. The project is expected to be completed next summer and will no doubt be very attractive to tech companies in the area.
GlobeSt.com: Are there new emerging tech hubs within the Orange County market?
Boyd: The Irvine Spectrum has been a longstanding hub, yet, the geography around the airport is catching up. Many spaces in this part of the market are being transitioned to accommodate tech users needing space. Expect this trend to continue, driven by the increased willingness of landlords to accommodate creative build-outs as well as the rich amenity base and access to transportation.
GlobeSt.com: What else should our readers take away from this report?
Boyd: As the demographics of the world continue to change, so will the way we use spaces. I remember my first day at CBRE: there were very few cell phones and certainly no email. How could we even function without either today! The changes we will see in the future will be distinct and create great opportunity for both users and owners of commercial real estate.
ORANGE COUNTY, CA—Ranking number 3 for rent growth in CBRE's Tech-Thirty report, Orange County should focus more on creating efficient spaces and keeping an eye on cost, given the recent appreciation in values, EVP Travis Boyd tells GlobeSt.com. The report, which analyzies the 30 leading technology markets in North America in terms of high-tech software/services job growth, revealed that office rents in Orange County increased 24.3% in the past two years, just behind Silicon Valley at 28.4% and Raleigh-Durham at 24.6%. The increase is in part buoyed by rising demand for office space from tech companies and young start-ups.
We spoke excluisvely with Boyd about the relationship between the commercial real estate market and tech comanies and how it could be improved even further.
GlobeSt.com: Your report shows that Orange County is #3 for rent growth. What is the real estate market doing to foster this tech relationship?
Boyd: The ownership and landlord community is creating and reinventing office space that truly aligns with the business desires of the tech organizations. I think the market is listening to the needs of tech clients as well as partners, and consultants are making sure owners of real estate recognize what our clients want and need to continue to be successful. Specifically, tenants are working with landlords to build out new space or re-design existing layouts with a focus on efficiency. The main improvements we are seeing across the board are more collaborative spaces and integration of natural light as well as the incorporation of wellness.
GlobeSt.com: What more could the market do to help this relationship grow?
Boyd: The market should focus more on creating efficient spaces and keeping an eye on cost, given the recent appreciation in values. Additionally, with a labor market as competitive as the one in Orange County, tenants need to be vigilant in making sure their workplace is designed in a way that helps attract and retain top talent. A great example of this thinking is Trammell Crow's the Boardwalk in Irvine. The project will arguably feature some of the boldest architecture in the area. The two towers will be connected by indoor bridges and outdoor terraces. The site will also have retail and restaurants, a fitness and wellness center, bicycle storage and more. The project is expected to be completed next summer and will no doubt be very attractive to tech companies in the area.
GlobeSt.com: Are there new emerging tech hubs within the Orange County market?
Boyd: The Irvine Spectrum has been a longstanding hub, yet, the geography around the airport is catching up. Many spaces in this part of the market are being transitioned to accommodate tech users needing space. Expect this trend to continue, driven by the increased willingness of landlords to accommodate creative build-outs as well as the rich amenity base and access to transportation.
GlobeSt.com: What else should our readers take away from this report?
Boyd: As the demographics of the world continue to change, so will the way we use spaces. I remember my first day at CBRE: there were very few cell phones and certainly no email. How could we even function without either today! The changes we will see in the future will be distinct and create great opportunity for both users and owners of commercial real estate.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.