X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

IRVINE, CA-Despite the tough economy and an escalating vacancy rate in the surrounding John Wayne Airport area market, Hines has managed to lease some 57,000 square feet at its 2211 Michelson building since the beginning of the year. The deals bring the 12-story, 266,000-square-foot building, which was completed in 2007, to about 75% occupancy.

“We’ve seen some very good velocity in first quarter,” says Hines senior vice president Doug Holte, the company’s regional partner for Orange and San Diego counties. “We’ve had a good mix of finance, insurance and real estate tenants, and now we’re getting other companies as well.” Among the tenants signed since January are Golden Gate Software Inc., which provides real-time data integration and high availability IT solutions, the law firm McKassen & Klein LLP and CG Funding, a division of San Diego-based Corporate Governance Funding.

Holte attributes the building’s ability to attract tenants in a competitive market to a combination of factors, foremost among which is the Hines name and the Houston-based company’s reputation for quality construction and superior property management. In addition, he points out the building is the first office building on the West Coast to achieve LEED silver certification, though two other Hines West Coast projects have since joined it. “Two of the new tenants are green businesses,” he says. “The LEED status gives tenants a boost to their green branding efforts.”

Though Holte will not quote asking rates for the property, he describes rents as above market for the area. According to Orion Property Partners, which is located in the building, and has the leasing assignment, class A rents for top tier buildings in the airport submarket range from $2.95 to $3.75 a square foot per month. According to Orion brokers Jay Carnahan and Bob Thagard, the submarket saw 108,765 square feet of absorption in Q1, which would mean the Hines building leases accounted for more than 52% of it.

Holte tells GlobeSt.com that other leases are in negotiation, with a couple close to being signed. “We have only 25% of the building left to go,” he notes. “We’re confident we will achieve full occupancy before too long.”

Dave Whitney with Lee & Associates is also part of the building’s leasing team.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.