Irvine Co. goes for a low price with a new innovation office park

Innovation Office Park: roller shutters, numerous amenities in the new low office complex

Newport Beach-based Irvine Co. hasn’t stopped building during the pandemic.

Now the region’s largest commercial real estate rental company has a number of new buildings that are expected to attract great interest from tenants who want a low-rise product when their employees return to the office.

The state’s largest office owner with more than 560 buildings in its portfolio – most of which are in Orange County – has opened the first phase of its newest office campus in the Innovation Office Park in the Irvine Spectrum area.

The loft-style office project spans 73 acres and is roughly the size of Irvine Co.’s Fashion Island mall in Newport Beach. It is near the intersection of the Santa Ana (5) Freeway and Sand Canyon Avenue.

The project will ultimately extend over 1.1 million square meters. The first phase, which has just been packed, covers a total of 300,000 square meters in eight two-story buildings. Many, but not all, of the buildings are expected to be occupied by a single tenant.

The design of the Innovation Office Park differs from other products in the Irvine Co. portfolio with a “health and wellness workplace,” according to the developer, whose campus marketing materials highlight a wealth of indoor functions and amenities. Working outdoors and a variety of customization options for tenants.

“We wanted to deliver an open-air village that was unique in the market today and that would encourage employees to return to the office,” said Steve Case, executive vice president of the Irvine Co. office division, during a tour of the project last Week.

Fast assembly
Irvine Co. first announced plans in 2019 for the Innovation Office Park on the former Traveland USA site on the edge of the Irvine Spectrum area.

The first phase of the office project is ahead of schedule, a feat for construction projects during the pandemic, officials noted.
“We are fortunate to be able to finish just ahead of schedule,” said Roger DeWames, senior vice president of development.

Recently the leasing efforts have started. The Irvine Co. team “waited for the project to complete construction before showing the project in person,” said Vice President Tom Greubel. Rental rates were not disclosed.

Building sizes range from 20,000 to 64,000 square feet; Suites start as small as 2,000 square feet.

Over the next few years, three more phases will be expanded in the Innovation Office Park and 20 more buildings will be added.

The new project comes as Irvine Co. recently completed the second phase of development on nearby Spectrum Terrace, a mid-size office complex that has recently had its stake in leasing activity.

Leasing efforts
The company announced that it has received strong initial interest in the Innovation Office Park, particularly in its relatively new office product, Flex Workspace +, which offers turnkey workspaces with shorter-than-normal rental terms.

The initial requirements for these flexible offerings were so high that the company added an additional 10,000 square feet to the new office park to be used for the Flex Workspace + program, the developer said.

Companies from “creative sectors such as media, games and software,” said Case Notes, have shown interest in leasing to date.

“We see strong early interest as health data improves, vaccines roll out, and companies plan their return to the office and post-pandemic growth strategies,” he added.

Low-rise trend
Innovation Office Park designed by the LPA; Burton Studio is the landscape architect.

As with other projects in the region, Irvine Co. in the Innovation Office Park didn’t skimp on the details, from a 150-year-old olive tree to outdoor floors with hand-picked stones to a state-of-the-art kitchen within a 40,000 meter radius. Square meter building.

Irvine Co.’s investment in a low-rise office product should pay off after the pandemic, which has fueled tenant demand for less dense creative office buildings with outdoor connectivity.

The company made additional design changes to the Innovation Office Park last year to address emerging concerns from tenants, such as: B. high-tech air filter systems, roller doors that lead to private terraces, and skylights for maximum energy-efficient daylight.

Irvine Co. has seen this increased demand for small and medium sized offices. One of its tenants, Advantage Solutions Inc., recently moved from its location in the Irvine Towers complex to a smaller building in the Lakeview Business Center.

Case says some companies are still opting for the more traditional high-rise option, pointing out that the towers in the 200 and 400 Spectrum Centers, which opened a few years ago, are near full.

Irvine Co. Portfolio
Irvine Co. construction remained stable throughout the pandemic, delivering the second 350,000-square-foot phase of the Spectrum Terrace office project late last year.

Like the Innovation Office Park, this medium-sized office complex will ultimately have an area of ​​around 1.1 million square meters. A planned third phase will include three more medium-sized offices and other buildings.

Irvine Co.’s projects are two of the three largest office buildings currently under construction in OC, along with the expansion of Edwards Lifesciences Corp.’s headquarters. along Red Hill Avenue in Irvine.

Irvine Co., which manages the buildings it owns, increased its OC portfolio by 1.3% to 35.8 million square feet last year, ranking first on the Business Journal Property Manager’s ranking.

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