Apple is upping its space in Irvine, with the recent signing of a 55,667 square foot lease at the city’s Spectrum Terrace office campus, according to a report from the Orange County Business Journal.
The lease was signed at 17800 Laguna Canyon Road, a 115,000 square foot building owned by Irvine Company. The lease deal is expected to begin sometime in December, according to the report.
The four-story building is part of the larger 1.1 million square foot Spectrum Terrace Campus, which was completed by Irvine Company earlier this year, an announcement from the firm shows. At that time, the firm also announced that the office campus had seen leasing activity from major companies like Alteryx, Coca-Cola Co., CoStar Group, iHerb and RSM.
The office campus is located at the intersection of the 1-405 and Highway 133 within the Irvine Spectrum neighborhood. The office campus is situated amongst a number of high end retailers and dining options, with an Apple storefront located nearby at 930 Spectrum Center Drive.
Irvine Company is a real estate investment and development firm with a portfolio spanning 129 million square feet. The portfolio includes 590 office buildings, 125 apartment communities with 65,000 units, 40 retail centers, a coastal resort, three golf courses and five marinas, according to the firm’s website. While primarily located in Orange County, approximately 35 percent of the firm’s portfolio is located in Silicon Valley, San Diego, West Los Angeles, Chicago and New York City.
Despite the Irvine Company’s Spectrum Terrace seeing leasing activity, Orange County’s office market as a whole continues to see challenges. According to a second quarter office market report from Colliers, vacancy rates have increased for the fourth consecutive quarter to 19.8 percent. The report also indicates that no construction was reported throughout the Orange County market, which may help to regulate vacancies. Additionally, the market experienced a net absorption of negative 285,000 square feet during the second quarter and a 2.6 percent decrease in year-over-year direct asking lease rates to $2.65 per square foot.
