Irvine Ranch Water District expands footprint with new office complex

The Irvine Ranch Water District’s new office complex will rise next to the agency’s headquarters, expanding its presence in an area whose office market has stayed flat but whose residential component has seen rapid growth.

Work started on the 70,000-square-foot Source H20 building, which is located at 15550 Sand Canyon Avenue, according to Urbanize. The two-story property will have a roof deck and a gym. Renderings also show an outdoor basketball court, a green courtyard area and solar panels over parking areas.

Construction on the Source H20 project expected to wrap later this year. Cushman & Wakefield agents Kevin Turner and John Gallivan, along with Colliers International’s Michael Hartel are exclusive leasing agents for the property.

The Irvine Ranch Water District is an independent public entity that provides drinking water, wastewater management, and other services to around 380,000 residents countywide.

Orange County has about 1.4 million square feet of office space over the last year, along with added 7,700 jobs. Office vacancy at the end of last year stood at 11.5 percent, a slight increase from 2017 figures.

Irvine Spectrum, a submarket where the water district is developing Source H20, has seen a 38 percent increase in apartment rents over the last two years. Overall, Irvine’s residential market has been hot, as potential buyers look for value away from more expensive areas like Newport and Laguna Beach.

That has spurred some high dollar figure sales for multifamily properties. In November, Olympus Properties paid $118.5 million for a 280-unit complex in the city. [Urbanize] — Dennis Lynch