September 2nd, 2010
There are two beautiful Class B office buildings in Newport Beach with office spaces for lease between 1,110 to 6,500 square feet.
The asking rents are $1.95/SF full service gross, but we’ve been negotiating rents in the $1.40/SF range in the first year, which is considerably cheaper than most subleases of comparable space. This goes to show there are still some incredible deals out there if you know the market!
For more information call Stefan Rogers at 949.263.5362 or visit www.newport-beach-office-space.com to search every office space for lease in Newport Beach.
Tags: building, lease, newport beach, office, office space, rent, search, space, sublease
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August 31st, 2010
Voit Real Estate Services has just released it’s Mid 2nd Quarter 2010 Report for the Orange County Office Market.
Voit’s mid quarter reports compliment the traditional quarterly market reports by providing more frequent and accurate market data and forecasts for it’s real estate and corporate clients.
Click HERE to view Voit’s Mid 3rd Quarter 2010 Orange County Office & Industrial Market Report.
A brief summary for commercial office and industrial tenants:
“The good news: the recession is over, and general activity is picking up in all product types. The bad news: we continue to have an imbalance of over-supply of product vs. demand. Result: downward pressure on pricing will continue in some product types and submarkets.
Highlights for the Orange County office market include:
1. Vacancy Rates: Vacancy has stabilized at just over 18% and will remain flat until it starts to decline in Q1 2011.
2. Availability Rates (vacant space and sublease space): Availability has been declining since its peak of 24.5% in Q1 2010 will continue to do so through Q1 2010 an thereon.
3. Average Asking Full Service Lease Rates: Effective lease rates will continue to decline but at a slower pace (estimate another 5%), to approximately $1.97/SF by Q1 2011. Rates are expected to start rising steadily by mid 2011.
4. Owner/User sale prices: The median price per square foot is set to increase in 3Q 2010 from $150/SF, rising steadily thereafter.
5. Employment: a net loss of approximately 25,000 jobs is expected in Orange County for 2010, with a positive net gain of approximately 2,000 jobs in 2011.
6. 2010 will be a stabilizing year with market support indicators turning positive in late 2010 / early 2011.
Recommendations for Office Tenants:
1. Be aggressive on leasing. Lease rates are still decreasing somewhat on certain product types in certain locations. Recommend signing at least 3 to 5 year terms to reduce and fix long term occupancy costs.
2. Don’t wait for the good news. You’ll miss the bottom. We’ve hit it already in some submarkets. Execute no later than end of 2010 to reap the best deals before landlord’s get bullish and hold firm on rates/lease terms.
3. Renew early – any lease expirations coming due in 18 months or less should be addressed now to avoid a weak negotiating position in a strengthining market.
For more information or free impartial advice on what this information means for you and your business, contact Stefan Rogers at 949.263 5362 / srogers@voitco.com
Tags: commercial, corporate, forecast, Industrial, landlord, lease, leasing, market, occupancy, office, office tenant, orange county, orange county office, prices, Real Estate, reduce, Report, rogers, sale, services, space, sublease, Tenant, vacancy, voit
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August 27th, 2010
The Tenant Improvement cost, whether paid for all or in part by the landlord, or by the tenant, is typically the largest leasing cost in all commercial real estate transactions.
Keeping the T.I. cost to a minimum is essential to conserve valuable company dollars and knowing how much the T.I.’s are going to cost is critical in order to ensure every penny of savings is being negotiated by the tenant.
Valley Commercial Contractors, LLP, Voit’s construction and development company, has prepared the following matrix for estimating tenant improvement costs for various size ranges of office space:
The above matrix should serve as a useful guide to all tenants entering into lease negotiations. I hope it is of help.
For more comprehensive information or advice on office space tenant improvements and what you can typically expect from landlords in terms of T.I. allowances in various situations, contact Stefan Rogers at 949.263.5362 – srogers@voitco.com
Tags: commercial, commercial real estate, cost, improvement costs, lease, lease negotiations, leasing, negotiate, office, office space, office tenant, Real Estate, real estate transactions, Tenant, tenant improvement, tenant improvements, transaction, voit
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August 24th, 2010
Voit Commercial Tenant Solutions just closed a lease for approximately 8,000 SF of Class A office space in Irvine Concourse, Irvine’s premier office complex.
The leased space was approximately 8,000 square feet and the starting full service rental rate was $1.29 per square foot, arguably 40% below the fair market rental value for the property of approximately $2.20 per square foot.
While the negotiated rent is extremely low for Class A office product in Irvine, it is not representative of typical market conditions. However, anomolies like this occur on occasions for our clients to take advantage of and we are always ready to present these opportunities if we are aware of their needs.
For more information and similar opportunities, contact Stefan Rogers: 949.263.5362 / srogers@voitco.com. Alternatively, visit www.irvine-office-space.com to search all available office space for lease or sublease in Irvine, CA.
Tags: available, class a, commercial, irvine, lease, market, negotiate, office, office space, property, rate, rent, rogers, search, solutions, sublease, Tenant, value, voit
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August 24th, 2010
With absorption for two consecutive quarters, the Orange County industrial market appears to be on the upswing at long last.
Though market challenges persist, activity improved in the second quarter as landlords offered attractive lease packages and tenants took advantage of the opportunities to lock in longer term deals at competitive rates.
Activity in the second quarter was on par with that of the first quarter at 3.1 million square feet, although absorption was roughly 35% lower in the second quarter with 701,921 square feet of absorbed space.
Overall, the uptick in activity levels compared to 2009 is creating a sense of renewed optimism in the market, which should continue to aid in the market recovery through the rest of 2010.
Stronger activity levels are attributed to the continual decline in lease rates and sale prices through the second quarter. The average asking lease rate decreased nominally to 58 cents per square foot, down 1 cent from the first quarter.
Similarly, average asking sale prices continue to drop as supply and demand factors require sellers to remain competitive with their pricing. In the second quarter, sale prices were reduced by nearly $6 per square foot from the previous quarter, averaging a price per square foot of $129.43.
As lease rates and sale prices dropped in OC, so did the industrial vacancy rate in the second quarter. The overall county vacancy rate stands at 4.4%, down from 4.7% in the first quarter.
West County experienced the lowest vacancy rate at 3.7%, while the airport area exhibited the highest rate at 4.6%. Manufacturing and warehouse space represented more than 94% of the total absorbed space, which may be partially attributed to increased activity at the Ports of Los Angeles and Long Beach.
Changes in gross activity remained relatively stable from the first to second quarter, resulting in less than a 2% decrease. Second quarter posted 3.1 million square feet of activity, showing strength in the North County market, which accounted for more than 60% of total activity. The largest transaction in the second quarter was a 246,732-square-foot user sale in the city of Orange.
Although second quarter absorption was lower than the previous quarter—which marked more than 1 million square feet of absorbed space—the continuation of positive numbers demonstrates signs of a strengthening market.
That didn’t translate to availability, which continued to increase, up 2% from the first quarter, marking the 15th consecutive quarter of rising availability.
A total of about 4.3 million square feet of newly available industrial space hit the market during the second quarter, increasing the availability rate to 11.2%. North County had the highest amount of availability, recording 10.4 million square feet of available space.
While availability continues to increase, market indicators suggest that a peak in the availability rate is near and we will begin to see some recovery before the end of the year.
Average asking lease rates remained relatively stable, falling only 1 cent to 58 cents across OC. Manufacturing and warehouse and research and development space both experienced a 2 cent decrease.
Since rates peaked at the height of the market in 2008 at 78 cents, the county has experienced an estimated 26% drop in average asking lease rates.
Leveling Off
Although rates continue to drop, the average rate of reduction on a residual basis is showing signs of stabilization…Click HERE to view full article.
Source: www.ocbj.com
Tags: available, deals, Industrial, industrial space, lease, market, orange county, prices, rate, reduce, research, search, Tenant, transaction, vacancy
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August 24th, 2010
The office market in Orange County is beginning to feel some relief following two years of challenges brought about by the mortgage industry meltdown and ensuing Great Recession.
The county’s office vacancy rate fell for the first time since the first quarter of 2006 and absorption was recorded for the first time in 11 quarters.
Though challenges persist that will slow the pace of recovery, OC’s unique dynamics—location, skilled workforce, international trade connections and high-tech industries—are expected to be significant factors in the region’s growth.
With job creation at the forefront of the recovery of the office market, OC’s employment growth is projected to be positive with the addition of 19,100 office jobs by the end of 2011, according to a recent report by CBRE Econometric Advisors. The county’s current unemployment rate of 9.2% remains among the lowest in Southern California.
The overall vacancy rate moved down to 18.2% in the second quarter from 18.4% recorded in the first quarter. Direct vacancy, which excludes empty sublease space, now stands at 16.8%, which represents a 1% decline from the first quarter.
Three out of the five submarkets also experienced declining vacancy levels, resulting from absorption in certain submarkets. North County’s vacancy level decreased to 15% from 15.7%; Central County declined to 18.4% from 19.2% and South County dropped to 17.9% from 18.3% in the first quarter.
The greater airport area recorded a nominal quarter-over-quarter rise to 19.6% from 19.5%, whereas West County inched upward to 11.1% from 10.3%.
The amount of total available space also declined from the first quarter, from 25.1 million square feet to slightly less than 24.7 million square feet. Available sublease space accounts for about 11% of the total space on the market.
The drop in vacancy was a result of the 198,697 square feet of absorption.
The majority of absorption took place in Central County, which absorbed a total of 136,513 square feet. North and South County also contributed positively, absorbing a combined total of 151,303 square feet in the second quarter.
This market’s absorption was offset by the West County and greater airport area submarkets, which had negative 37,725 and 51,394 square feet of absorption.
This recent positive change in occupancy is a significant sign for the office market, symbolizing modest recovery. Offsetting some of the negative absorption recorded in the first quarter, OC’s year-to-date total now is a negative 215,447 square feet.
Rents
Declining rents also are a contributing factor to the positive momentum witnessed in the second quarter. Many tenants are starting to look at expansion plans to take advantage of competitive lease rates and concessions being offered by landlords.
In the second quarter, the average asking lease rate dropped 8 cents to $2.06 per square foot. This latest decline places the average asking lease rate at 2005 levels…Click HERE to view full article.
Source: www.ocbj.com
Tags: available, lease, news, occupancy, office, orange county, orange county office, rate, recession, recovery, rent, Report, space, sublease, Tenant, time, unemployment, vacancy
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August 18th, 2010
Your primary business is running your company. How often do you lease office space? Hopefully, you don’t have to do so more than every 3 to 5 years or so; the same with lease renewals.
The bottom line is that you rent office space only a few times in your business life. Landlords on the other hand rent space over and over again. In most cases, they even hire a listing agent to help market the property and advise them. Do they have an unfair advantage? You bet they do. How do you balance this unfair advantage? Engage the services of your own qualified tenant representative.
Many tenants have a fear that by engaging the services of a tenant representative they will end up having to pay more in rent so that the landlord can pay the tenant representative. I am sure you have heard the sales pitch from an agent that engaging a tenant representative doesn’t cost you anything. The response I hear to this is “the landlord tacks on the fee on top of the lease rate.” So, who is right?
When it comes to negotiating for office space, there is no question that a good tenant rep will not only save you money, but will also make sure you don’t make any critical mistakes.
Not to mention, there is usually already a real estate fee built into the asking price. This is paid whether or not you have representation. Typically, what happens is that the fee, usually 4% to 6% of the gross lease amount, is split between the tenant representative (leasing agent) and the listing agent. There really is no additional fee tacked onto the lease rate and you won’t save anything by not having representation. The listing agent, who represents the Landlord – no matter what they tell you – will get the whole thing.
What about lease renewals? Should you also engage the services of a tenant rep? Absolutely! How a tenant representative gets paid on a renewal is negotiable. Should they be paid a full fee on a renewal negotiation? The answer depends on how much work is involved. If is just a matter of going out and doing a market survey then negotiating the deal, they probably don’t deserved a full fee. Most tenant reps will work as consultants either hourly or for a predetermined flat fee. On the other hand, if you want to consider other alternative locations, request proposals and do some preliminary negotiations on other properties, it is justified. It is a comparable amount of work that would have to be completed if you were moving. Or at least a half of a fee is justified, the leasing side of a commission.
How will a tenant rep save you money?
1. The leasing process is generally complex. After labor costs, your investment in office space may be your most expensive line item and decisions you make will have an impact on your company’s profitability. The tenant representative is your guide through the process.
2. Market knowledge is a key ingredient in which a qualified tenant representative can make a big difference. Having a grasp on asking rates versus deal rates and incentives available is important to make sure you get the best terms available.
3. A qualified tenant representative understands the numbers and is able translate data into implications for your business – advice on growth strategy within a particular building or market, for example. Tenant representatives are also able to perform financial analysis to help you select the most cost effective location.
4. Expert negotiation skills are critical for a favorable outcome. Representation gives you subtle leverage during negotiations, informing the landlord that you are professionally represented and undoubtedly advised of alternative sites and comparable lease rates. As an added benefit, a tenant representative may know the temperament of a particular landlord and/or landlord’s representative, and recognize how far to push the negotiations without jeopardizing the transaction. This is a definite advantage when it comes to lease renewals, too.
5. Familiarity with the documents is a must. Tenant representative have a working knowledge of the documents necessary to conduct the transaction. These documents include requests for proposal, letters of intent, lease agreements and workletters and vary from market to market. A tenant representative knows how to customize the documents to meet your needs.
Source: James Osgood – OfficeFinder
Tags: analysis, building, business, cost, estate, financial, growth, help, landlord, lease, listing, market, money, office, office space, process, professional, property, rate, Real, Real Estate, rent, sale, save, services, space, survey, Tenant, time, transaction
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August 18th, 2010
Looking for Available Office Space Listings for Lease, Sublease or Sale in Newport Beach, CA?
Most commercial real estate listings are not available online to the public. However, Voit subscribes to every commercial real estate listing service and provides free instant access to every available commercial office space for sale, lease or sublease in Newport Beach, CA. Click below to start searching every available commercial office space for sale, lease or sublease in Newport Beach, CA or call Stefan Rogers at 949.263.5362 for professional assistance and off-market listings.
Click Here to Search All Commercial Office Space for Sale, Lease or Sublease and Executive Suites in Newport Beach, CA.
Once you’ve found the perfect commercial office space for sale or lease in Newport Beach, CA, why not take advantage of our professional tenant representation services to negotiate your office lease or purchase, and guarantee you maximum time and money savings, while protecting you from real estate risk. We’ll manage the entire lease or sale process on your behalf and give you the impartial professional advice you expect, so you can remain focused on running your business.
Our expert tenant representation services are free. We share the listing broker’s fee, which is paid in full even if you don’t benefit from our tenant representation services. Furthermore, we have proven to save clients an average of 30% in rent and occupancy costs on every lease or sale, several times the full listing fee.
Our team of tenant representation brokers specializes in representing tenants and buyers in the sale or lease of commercial office space in Newport Beach. We possess the market knowledge and negotiating expertise every business needs to guarantee the best terms when renting or buying commercial real estate in Newport Beach.
The City of Newport Beach office space market provides office space listings for lease, sublease and sale. Class A, B and C office space listings in Newport Beach are available for lease in all size ranges and typically rent for lease terms of one to five years. Newport Beach office space for lease is also available in executive office suites, providing short term, flexible serviced office space for rent at a premium compared to the traditional Newport Beach office space rental market.
Click www.newport-beach-office-space.com to start searching every available commercial office space for sale, lease or sublease in Newport Beach, CA or call Stefan Rogers at 949.263.5362 for personal search assistance and off-market listings.
Tags: buy, class a, commercial, estate, executive, executive office, executive suites, lease, listing, market, negotiate, newport beach, occupancy, office, professional, purchase, Real, Real Estate, rent, risk, rogers, sale, save, search, serviced office, serviced office space, services, space, sublease, Tenant, Tenant Representation, time, voit
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August 11th, 2010
Voit Real Estate Services recently announced record low asking lease rates for Class A Office Space at 2040 Main, Irvine, CA!
Floors 7 and 8 are now available for only $1.35/SF Full Service Gross. This is lower than the going rate for sublease space without the risk of subleasing from a credit risky sublessor.
It’s also $1/SF lower than their average asking lease rate in the building and about $0.70/SF lower than the average asking lease rate in Irvine Concourse.
Available suites range from 3,800 SF to 11,428 SF.
Call Stefan Rogers at 949.263.5362 for further information or visit www.irvine-office-space.com to search all available office space for lease in Irvine.
Tags: available, class a, irvine, lease, office, office space, rate, Real Estate, sublease, voit
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August 10th, 2010
Orange County‘s 2nd quarter of 2010 office market data indicates definite signs of stabilization.
Last week, and for the first time in over two years, one of the premier landlords in Orange County increased their effective lease rates in the 2nd quarter. Additionally, a prominent Orange County developer increased their “bottom line” sale prices on their new office buildings. Although neither of these landlords increased their asking prices, they stood their ground and insisted on final terms more favorable to them.
While these occurrences’ remain the exception to the rule for the moment, it may be the first indication of a turnaround in lease rates. That said, most landlords are still managing their rent rolls aggressively, offering terms that remain very favorable to their existing tenants. For example, we recently negotiated several early lease renewals whereby the landlord offered to significantly reduce lease rates, provided free rent and a generous tenant improvement allowance for tenants who had substantial time left on their existing leases.
Let’s discuss how these factors play into your business strategy moving ahead. For the moment, it remains a “tenant’s market”. However, current conditions suggest that this may be short lived. So, don’t get left behind! Profits and are up for many major US corporations. For example, Ford Motor Company just reported a $2.6 billion dollar second quarter profit, exceeding even the most optimistic of expectations. Dozens of other companies have reported similar good news. This is evidence of drastic expense and personnel reductions over the last few years. Strong earnings and the resulting accumulation of cash on hand has precipitated a re-commitment to marketing budgets, which for most of Corporate America, were drastically scaled back as expenses were trimmed to survive the recession. This new spending, with its focus on growth, bodes well for the future. Job growth is the likely outcome as corporate revenues continue to improve.
Attached are links to the Voit Real Estate Services‘ Orange County Commercial Market Reports for the 2nd Quarter of 2010. They are simple to download by clicking the link below, though some of the high points are:
Vacancy is up but Availability is down: You may ask how that can be, but fewer spaces are available for sublease and the space that was available for sublease is now on the market directly from the Landlord;
Office and Industrial asking rental rates are down again: Office asking rates have come down another $0.06/sq. ft. this quarter and Industrial edged down $0.03/ sq. ft. The drop has flattened out compared to the nearly 35% drop from the highs of 2008;
Orange County employers are hiring: It may be a “jobless” recovery in other regions, but Orange County is beginning to hire. The unemployment rate has inched down from 9.5% to 9.3%. This is still nothing to cheer about, but it is good news that indicates a trend toward sustained economic recovery.
Click HERE to view Voit’s latest commercial real estate market reports.
For free, impartial advice on your corporate real estate strategy and solutions available to you for reducing your overhead and realigning your real estate with your business plan, contact Carter Harrington at 949 263 5396 / charrington@voitco.com.
Tags: commercial, corporate, Industrial, lease, market, negotiate, orange county, orange county office, prices, Real Estate, real estate market, reduce, rent, sale, services, solutions, space, sublease, Tenant, time, vacancy, voit
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