By Keith Loria, Contributing Editor
PS Business Parks Inc. has sold the Orange County Business Center, five multi-tenant office buildings in Santa Ana, Calif., for $73.3 million.
Located at 1221-1261 E. Dyer Road in Orange County, the park comprises roughly 437,000 square feet in total, with flexible floor plans ranging from 1,000 to 80,000 square feet.
At the time of the sale, the property was 84.9 percent occupied.
The Orange County Business Center offers immediate access to the Costa Mesa, Santa Ana and San Diego freeways, and is just minutes away from the Orange County John Wayne Airport.
The 4-1-1 on the Orange County Office Market
The nearby Los Angeles office market is booming, thanks in part to developers targeting submarkets that can accommodate new inventory and ensure steady absorption rates throughout 2017. Office development reached a cycle high of 2.3 million square feet in 2017, marking a 53.7 percent year-over-year increase.
According to JLL’s Orange County Office Insight – Q1 2018 report, the large number of available blocks of space provides plenty of options for tenants and opportunities for landlords in the current office market.
The report noted that an increasing number of companies adopting space efficiency practices, combined with 1.6 million square feet of new deliveries over the last six months, have caused an uptick in the number of available large blocks of space.
Currently, there are 60 blocks of space of at least 50,000 square feet throughout 50 buildings, with the highest concentration in the Airport Area. Additionally, there are nine blocks of space when taking into account buildings currently under construction, with a large percentage of these spaces rating Class A or recently converted creative properties.
Also, over the past few years, more than 100 traditional Class B properties have been converted to creative buildings, totaling 6.5 million square feet, with a majority of these conversions occurring in the Airport Area.
PS Business Parks Inc. owns and operates primarily multi-tenant flex, office and industrial space. As of March 31, the company wholly owned 27.9 million rentable square feet, with approximately 4,900 commercial customers concentrated in six states, and also had a 95 percent interest in a 395-unit apartment complex.
PS Business Parks Inc. has now divested 600,000 square feet of property in Orange County over the past year, and still owns 107,000 square feet that is up for sale.
Image courtesy of Yardi Matrix