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FOUNTAIN VALLEY, CA- Mitsubishi Materials USA has broken ground on a new 52,840-square-foot headquarters here that will represent both a relocation and an expansion from the company’s existing 43,000-square-foot facility in Irvine. Senior vice president Dave Desper of the Newport Beach office of CBRE tells GlobeSt.com that Mitsubishi expects to move in to its new quarters at Southpark Business Center in November in a relocation from 17401 Eastman St. in Irvine, where the company has rented space for about 10 years.

Desper, who represented Mitsubishi Materials along with senior vice president Chip Wright of CBRE’s Newport Beach office, tells GlobeSt.com that Mitsubishi is having the new space built to suit rather than renting an existing building because the company had very specific requirements for its new space and nothing that was on the market met its requirements. The company, which is a leading global manufacturer and supplier of cutting tools for the metalworking industry, was looking for high-image warehouse and distribution space with at least 24-foot clearance, four dock-high positions, a truck yard and 15,000 square feet of office space.

Those requirements eliminated the buildings that were available at the time Mitsubishi signed its build-to-suit deal in November. The vacancy and availability rates have increased since then, but Desper says that the new space that has become available still does not include any buildings that would meet Mitsubishi’s specific requirements—and much of what has come onto the market is still occupied.

Although the trend for many companies in the last 30 to 60 days is right-sizing, and although the market is not very active today, Mitsubishi needed to build the new space because, “We still have a supply problem,” Desper points out. The county’s industrial vacancy rate rose to 4% in the fourth quarter from 3.7%, according to the latest CBRE market research, while the overall Orange County availability rate increased from the third quarter’srate of 7.4% to stand at 8.2% at the close of the fourth quarter.

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