Office Market Sputters, Crawls

Stream Realty Partners co-managing partner Colby Annett, whose company reps office properties, tells us that it’s a long and winding road to recovery. (The key here is not to get lost and end up in Reno. We've been in that scenario.)
“There is no question the office market has begun a recovery—it’s just not as fast as anyone had hoped,” Colby says. Still, he notes, a lack of new construction will lead to a steady increase in rental rates as more space is absorbed. The impact of current deals in the market will add up in the not-too-distant future to drive vacancies down significantly. (Maybe the Mayans were predicting an apocalypse of high vacancy rates?) A recent bread-and-butter deal by Stream saw the company repping the Von Karman Business Park in Irvine in its lease of about 6,300 SF to Arbor E&T, a workforce development specialist.
Not to be outdone, tenants are still using all the leverage they can in the OC. “Decisions to renew or relocate involve many factors,” JLL’s Ronda Clark tells us. The keys: the need for growth or contraction;labor availability or their need for talent; changes in workplace environments; amenities for employees (having a good burger place nearby never hurt anyone); and capital expenditure requirements. Ronda, along with Ryan Hawkins and Joe Bevan (pictured) repped Corinthian Colleges recently when it decided to reup for 164k SF of office space in Griffin Towers in Santa Ana. The landlord, Lincoln Property Co, was repped in-house by Kevin Hayes Jr.

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