Top 10 California Office Deliveries in 2017
- Mar 14, 2018
California is one of the most active office markets in the country, with consistent development and leasing activity over the past decade. In Los Angeles, more than 2 million square feet of office space came online in 2017, while San Francisco added about 1.4 million square feet last year. Moreover, roughly 7 million square feet is expected to come online by the end of 2018 in San Francisco.
While high rates are beginning to push tenants to less expensive California metros, such as Sacramento, the most active metros in terms of office deliveries in 2017 remain San Jose, San Francisco and Los Angeles. This list highlights the largest office deliveries in The Golden State by square footage.
10. Icon at Sunset Bronson Studios
Hudson Pacific Properties completed the 323,103-square-foot office property in January 2017 to meet LEED Gold standards. Located at 5800 W. Sunset Blvd. in Los Angeles, the 14-story building is part of an 11-acre media production campus in Hollywood. Last October, Netflix signed the largest lease in the metro by deciding to occupy the entire building. Additionally, the Los Gatos-based video streaming company also leased the adjacent studio complex. The office building features more than 1,500 parking spaces and is situated next to Hollywood Freeway.
9. Coleman Highline
Last August, Hunter Properties delivered the first two phases of the Coleman Highline campus, located at 1115 and 1143 Coleman Ave. in San Jose, Calif. CBRE is in charge of leasing services for the 357,106-square-foot properties. The two mid-rises offer more than 1,000 parking spaces and convenient access to Interstate 880 and multiple public transportation options. When completed, the San Jose office campus is expected to comprise six buildings and more than 1.5 million square feet.
8. Wilshire Grand Center
Completed last June, the mixed-use development incorporates 45,100 square feet of retail space, 365,000 square feet of office space and about 915,000 square feet of hotel space. The Hanjin Group owns the 73-story building and Cushman & Wakefield is in charge of management and leasing duties. Tenants at the 1.3 million-square-foot Wilshire Grand Center, located at 900 Wilshire Blvd. in Los Angeles, include Southern California Association of Governments, Metrolink and Korean Air.
7. Bay Meadows
Part of a planned five-building office complex, Stations 3 and 4 are located at 2950 and 3050 S. Delaware St. in San Mateo. Owner Stockbridge Capital Group selected Newmark Knight Frank to handle leasing duties at the four-story properties. The buildings offer first-floor retail space totaling more than 25,000 square feet and a combined 993 parking spaces. As of January, Station 3 was about 30 percent vacant, while Station 4 was fully leased to SurveyMonkey, Ten-X and Zuora.
6. 400 Spectrum Center
Irvine Co. owns and manages the 426,000-square-foot office property, completed last July: the tallest Irvine office tower. Located at 400 Spectrum Center Drive, part of the 1.5 million-square-foot Spectrum Center office campus, the 21-floor building sits close to the intersection of interstates 5 and 405. The property offers convenient access to multiple public transportation, dining and shopping options. Less than two miles away, the company also owns the 1.2 million-square-foot Discovery Business Center.
5. America Center II
The two buildings located at 6220 and 6280 America Center Drive in San Jose are part of the 885,000-square-foot America Center campus. USAA Real Estate Co. completed the properties in December 2017 and selected SteelWave as managers and Cushman & Wakefield to be in charge of leasing duties. The buildings, set to pursue LEED Gold certification, are situated about five miles from Interstate 880 and roughly seven miles from Interstate 680. Combined, the two buildings offer more than 1,500 parking spaces. Earlier this year, USAA Real Estate Co. teamed up with Lowe to acquire Park Center, a 566,000-square-foot Washington, D.C.-area office complex.
Wells Fargo Bank owns the recently completed, 496,500-square-foot building at 2600 San Tomas Expressway in Santa Clara. The property, designed by Gensler, is fully occupied by NVIDIA. The technology company ordered the demolition of San Tomas Business Park in 2015 to make room for its two-story headquarters. The triangular building sits on 36 acres next to multiple bus stations and offers two levels of underground parking with more than 1,500 spaces.
3. The Boardwalk
Trammell Crow completed the 550,000-square-foot building last November, located at 18691 Jamboree Road in Irvine. The owner selected CBRE to be responsible of management and leasing activities. As of January, the nine-story building was about 75 percent vacant. The Boardwalk is situated within walking distance of multiple public transportation and dining options, including The Melting Pot and North Italia.
2. Five Point Gateway
Completed last November to meet LEED Silver standards, the two buildings are located at 15101 and 15131 Alton Parkway in Irvine. Five Point Holdings owns and operates the 661,000-square-foot property, which serves as Broadcom’s headquarters and is situated about three miles from interstates 5 and 405. Five Point Gateway offers more than 2,000 parking spaces and convenient access to Irvine Spectrum Center. The owner is currently working on two adjacent buildings, adding more than 350,000 square feet of office space to the campus.
1. Campus @ 3333
The three eight-story buildings are part of the 1.6 million-square-foot Campus @ 3333. Located at 3000, 3100 Tannery Way and 3535 Garrett Drive in Santa Clara, the 910,000-square-foot properties are fully leased to Aruba Networks and Palo Alto Networks. CalSTRS acquired buildings E, F and G of Campus @ 3333 last September from Menlo Equities as part of a $600 million portfolio sale. The sale was funded by a $310 million loan from Deutsche Bank. The office campus is situated next to Bayshore and Lawrence freeway.
Images courtesy of Yardi Matrix and via Google Street View