Mitsubishi has been in the office/flex building on Jeronimo Roadfor seven years and wanted to review relocation alternatives inaddition to considering a renewal, according to Studley. Theelectronics firm had a little over 18 months remaining on itsprevious lease.

Terms of the deal were not disclosed, but Studley says the newlease included a competitive rental rate and a lease restructuringthat provided additional concessions for Mitsubishi that were notpart of its previous lease. Since terms were not disclosed and thedeal involves a combination of office and industrial space,industry sources say that estimating the value of the deal isespecially difficult.

Average asking office rental rates in Orange County have climbedto a new high of nearly $2.30 per sf per month recently, andindustrial rates have been firming too. But Yasushi Moriyama, EVPof planning for Mitsubishi Digital Electronics America, says thatthe new deal reduces the company's operating expenses.