Lincoln Property Secures HQ Lease in Orange County

FLIGHT at Tustin Legacy rendering. Image courtesy of Lincoln Property Co.

Sabra Health Care REIT has signed a 13,000-square-foot lease at Lincoln Property Co.’s FLIGHT at Tustin Legacy, an 870,000-square-foot, Class A office campus in Tustin, Calif. Cushman & Wakefield acted on behalf of the tenant, while CBRE represented the landlord.

Sabra is relocating its headquarters from Irvine, Calif., to 1781 Flight Way within the campus, with move-in scheduled for the fourth quarter of this year.

LPC West offers on-site property management services at the location. A fitness center, EV charging stations, outdoor recreation areas, as well as a Mess Hall Market, an event space and outdoor biking and walking trails are among the amenities at the office campus. A second phase offering built-to-suit alternatives is also planned to take shape.

Cushman & Wakefield’s Senior Associate Luke Napolitano, Executive Managing Director Chon Kantikovit and Director Justin Cassel represented Sabra in the lease agreement.

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Located on the northeast corner of Red Hill & Barranca Avenue, the purpose-built creative office campus is 3 miles from John Wayne Airport. The property offers connectivity to the Tustin Metrolink Station and other public transportation connection points.

FLIGHT at Tustin Legacy provides access to employee bases in San Diego, the Inland Empire and Los Angeles, the campus being within walking distance of an array housing options and numerous dining and retail destinations. The 26-acre Tustin Legacy Park is also nearby.

Leasing activity in Orange County slows

According to a Savills report, the Orange County office market started off the year with only 1.1 million square feet of leasing volume reported in the first quarter of 2023, marking a 28 percent decrease from the previous quarter’s 1.5 million square feet and a 33 percent decrease from the previous year.

The same source indicates that out of the top ten leases signed in the first quarter, six were renewals. The decline in demand for office space lingers on, due to to various macroeconomic factors such as recession concerns, increasing interest rates, recent failures of midsized banks, a hiring slowdown, as well as hybrid workplace strategies.