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LAKE FOREST, CA-Beech Street Corp., a PPO network, has signed a new lease to remain in its 52,319-sf corporate headquarters here but will shed about 35,000 sf in an adjacent facility, according to Studley. Michael Props of Studley, who represented the preferred provider organization in its new lease, says that Beech Street Corp. signed a five-year renewal for its two-story, class A headquarters building at 25500 Commercentre Drive.

The adjacent building where Beech Street is vacating the 35,000 sf of space is at 25550 Commercenter Dr., where its space was on the second floor. Props explains that, with Beech Street having recently been acquired by healthcare management company Concentra Network Services, the Lake Forest-based company decided to consolidate its headquarters operations.

In addition to Props, Beech Street was also represented by Bruce Schuman and Royce Sharf of Studley. The landlord, NewTower Trust Co., was represented by John Harty and Michael Coppin of Trammell Crow Co.

Terms of the lease were not disclosed. Average asking lease rates stood at $2.04 per sf per month in Lake Forest in a recent market report, with average asking rates at $2.37 for the South Orange County market.

Beech Street, which is the sole occupant of the building at 25500 Commercentre Dr., formed in 1951 as a third-party administrator for the workers’ compensation market. The company expanded to a full-service PPO for the group health market in 1984.

The two-million-sf Lake Forest office submarket is part of a 17-million-sf South Orange County office market where the direct vacancy rate has been running a little under 7% and the availability rate has run a bit over 10% in recent market reports.

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