Irvine Company proceeds on office development in OC
Innovation Office Park launches second phase of 1.1M sf buildout
The Irvine Company has begun construction on seven office buildings containing 260,000 square feet for a second phase of its 73-acre Innovation Office Park in Irvine.
The Newport Beach-based developer’s project at 150 Progress is billed as the first open-air office village designed for health and wellness, the Orange County Business Journal reported.
When completed, Innovation Office Park will have 1.1 million square feet of office space in 28 loft-style buildings served by restaurants, cafes and a grove of 2,600 mature pine and olive trees.
Among elements billed as wellness features are oversize roll-up doors to private patios, fitness areas inside and out, operable windows for fresh air, advanced air filtration and energy-efficient glass and skylights for natural lighting.
A first phase at the office park in the Irvine Spectrum area near I-5 and the 133 Freeway consisted of eight buildings totaling 300,000 square feet. Geared toward small and midsized tenants, it is about 65 percent leased.
The seven buildings in phase two, expected to be completed this year, range between 20,000 and 64,000 square feet, totaling 260,000 square feet. They’re now seeing interest from larger-size tenants.
The architect is LPA, a sustainable design firm based in Irvine. The landscape architect is Burton Studio, based in Solana Beach.
Irvine Co. is the largest owner of offices in California, with much of its holdings in Orange County. Its portfolio of more than 560 buildings tops 50 million square feet of space.
While it’s unclear how OC’s office market will shake out amid remote working and other pandemic-induced trends, Irvine Co. officials say that recent leasing success at its new Spectrum-area projects is proof that certain companies want to remain office-centric.
“We’re highly encouraged” by the leasing activity, said Steve Case, executive vice president for Irvine Co.’s office division. He said the company’s “premium workspace” is seeing high demand.
Initial tenants include video game-related companies Sega of America, Postcard Game Studio, Frost Giant Studios, and Notorious Studios.
Other tenants include Beach Cities Commercial Bank, now seeking regulatory approvals, and Finfare, a fintech startup with a focus on AI-powered payment systems
Negative outlooks for California’s office and retail markets have turned toward optimistic recently, academics from the UCLA Anderson Forecast and law firm Allen Matkins said in a recent survey, with development and construction of new office and retail properties expected to pick up through 2024.
[Orange County Business Journal] – Dana Bartholomew