1. ISSUE
Q1
Q2
2011
2008
2010
JAMBOREE CENTER
this issue
Building Spotlight 1
Executive Summary 1
BUILDING SPOTLIGHT
Market Asesment 2
PROJECT SPOTLIGHT:
OPUS CENTER IRVINE Broker Information 4
IRVINE COMPANY
2050 MAIN STREET, IRVINE
At the center of the Irvine Busi-
Jamboree Center:
ness Complex, 2050 Main Street
1-5 Park Plaza,
represents the third and final fi-
Irvine, CA
nal phase of the highly successful
Opus Center Irvine development A GUIDE FOR DECISION MAKING ORANGE COUNTY OFFICE MARKET
within the square feet of Class-A
1.6 million 48-acre Irvine Con- BY: SCOTT JOHNSTONE
course. office space in the heart
premier
of the John Wayne Airport Area. quarter of the year. All submarkets decreased in avail-
Opus Center Irvine III offers EXECUTIVE SUMMARY - Turning a Corner
314,074 square feet of space in ability with the exception of North County. In the end,
13 stories at the intersection of
Measurable progress was made in the na-
MacArthur Boulevard and Main
the total availability rate fell to 24.4 percent, down
tional economy and the local office market over the
Street, acclaimed to be one of the 90 basis points from the previous quarter. Heavier
most attractive urban areas in the past six months. In December, the national unem-
county. activity in the Airport and South County submarkets
ployment rate fell to 9.4 percent as nonfarm pay-
reflected tenants’ desire to take advantage of favor-
rolls increased by 103,000 from the previous month.
able lease terms for highly desirable locations before
Additionally, October and November’s numbers
trophy spaces dwindle and/or rental rates increase.
were revised upward and claims for jobless benefits
Even though average monthly asking rents dropped
Three 20-story towers designed dropped to the lowest level in two years. The current
by world-renowned architect to $1.99 on a full service gross basis, down $0.03 from
Opus Center Irvine provides im- administration also signed into law an $858 billion
Skidmore, owings & Merrill and
mediate access to all of Orange
two 12-story towers designed by
three months ago, effective rents are inching up be-
County’s freeway system. bill extending Bush-era tax cuts for all income levels
Langdon Wilson. cause landlords are gaining confidence that the mar-
LEASE RATES: $3.65 FSG for two years; the measure also reduces payroll taxes
Prime Location off the 405 Free- ket has bottomed and are reining-in concessions.
way and minutes to John Wayne for workers by two percentage points for 2011, which
Airport with easy access to the 55 The largest investment transactions in the
Freeway and the 73, 261, and 241 should help bolster slow but steady job growth. At
Toll Roads. fourth quarter were the sales of two previously held
the local level, though Orange County’s unemploy-
Four-Diamond Hyatt Regency Ir- Maguire Property buildings. In its first entry into the
vine on-site.
ment rate increased slightly from 9.1 in October to
South Coast Metro area, The Irvine Company pur-
9.3 percent in November, it still added 19,000 total
Energy Star labeled property - chased the 827,000-square-foot Pacific Arts Plaza for
rated in the top 20% of energy ef- nonfarm jobs since November 2009.
ficient buildings in the nation. $213 million, or $258 per square foot; Maguire origi-
Orange County’s office market turned a
Expansive, uninterrupted views. nally acquired the buildings in 2005 for $325 million.
corner as the vacancy rate for all property classes de-
Rental Rates: The other sale was for 415,000 square feet at Quintana
clined to 20 percent, down 70 basis points from three
$2.05 - $2.45 FSG to Menlo Equities. Itwas bought out of receivership af-
months prior. Fourth quarter’s vacancy rate was 100
ter Maguire Properties
basis points less than the market’s historical high of
defaulted on the loan, selling for $69.3 million, or
21 percent, which was recorded during the second
$167 per square foot.
JOHNSTONE | PUCCINELLI | LANTGEN

2. p2
Vacant Space by Submarket
Vacant Space by Submarket
Orange County Office Space, Fourth Quarter 2010
10,000,000
9,000,000
9 000 000 8,489,728
8 489 728
8,000,000
7,000,000
6,000,000
5,000,000
4,000,000
, ,
3,498,246
3 498 246
2,966,673
3,000,000
2,000,000
1,577,894
754,672
754 672
1,000,000
0
Airport Area Central County North County South County West County
JOHNSTONE | PUCCINELLI | LANTGEN

3. p3
Vacancy Rates by Submarket
Orange County Office Space, Fourth Quarter 2010
Vacancy Rates by Submarket
25.0%
21.6%
21.0%
19.2% 20.0%
20.0%
15.0%
11.4%
10.0%
5.0%
0.0%
Airport Area Central County North County South County West County
Net Absorption Square Footage by Submarket
Orange County Office Space, Fourth Quarter 2010
Net Absorbtion Square Footage by Submarket
400,000
336,560
300,000
200,000
165,024
100,000
22,068
Central County North County
0
Airport Area
Airport Area Ce ntra l County North County SouthCounty
South County We st County
West County
100 000
-100,000
(103,612)
(151,366)
-200,000
Yearly Job Change, Orange County
Orange County Office Space
Yearly Job Change, Orange County
Total
1998 65,308
Sea sona l l y Adj usted
1999 46,042
2000 43,608
80,000
2001 24,925
60,000
2002 (10,042)
40,000
20,000
20 000 2003 25,342
25 342
Thousands
0 2004 27,758
-20,000 2005 34,250
-40,000 2006 27,983
-60,000
60 000
T
2007 (5,658)
-80,000
-100,000 2008 (33,825)
-120,000 2009 (109,842)
98
99
00
01
02
03
04
05
06
07
08
09
2010
2011
2012
2010 (9,396)
(9 396)
199
199
200
200
200
200
200
200
200
200
200
200
2011 11,904
Source: U.S. Bureau of Labor Statistics
2012 37,177
JOHNSTONE | PUCCINELLI | LANTGEN

4. p4
JOHNSTONE | PUCCINELLI | LANTGEN
Notable Market TEAM EXPERIENCE
Transactions: With over 50 years in the business, we pride ourselves as market makers, providing
our clients the most udpated and in-depth perspective on todays marketplace. Our
Pacific Arts Plaza
experience and historical knowledge allows our clients to make smarter decisions,
Costa Mesa resulting in more profit and cost saving opportunities.
Buyer: The Irvine Company
Size: 877,000 Square Feet The combination of a sole proprietors mentality and attention to detail mixed with
institutional experience and backing truly makes us a single source solution for all of
21 Technology Dr. your Corporate Real Estate needs.
TEAM CAPABILITIES
Irvine • Lease Renegotiation • Employee Location Optimization
Tenant: Bio-Rad Laboratories • Multimarket Corporate Representation • Construction Management
• Property Analysis + Space Optimization • Lease Administration
Size: 65,034 Square Feet • Market Data & Analysis
• Architectural Review
• Relocation Analysis • Property Analysis
5230 California Ave • Lease Negotiations
• Site Acquisition
Irvine
PBS SoCal: “By combining the company’s headquarters and TV studio under one location, PBS
Tenant: Broadcom
SoCal has finally found a home in Orange County. We found your team’s attention to detail,
Size: 53,839 Square Feet market knowledge, negotiation tactics and professionalism paramount in getting us the best
deal possible for the foundation. We appreciate your ability to align our short and long term
15460 Laguna Canyon Road goals for the foundation with our new office lease and location. Without your team’s help, this
would not have been possible. On behalf of PBS SoCal Foundation, we would recommend you
Irvine
to anybody who would need representation or information on the Real Estate Market ”
Tenant: Aleks Corporation
-Mr. Mel Rogers, CEO/ President
Size: 53,220 Square Feet
SCOTT JOHNSTONE GREG PUCCINELLI
President Senior Vice President
Bridge Commercial Properties Grubb & Ellis Company
CA License # 00950979 CA License # 01215693
P 949.978.5659 P 949.608.2059
C 949.300.1057 C 949.295.3323
scott@bridgecre.com greg.puccinelli@grubb-ellis.com
JASON LANTGEN TARA PIERCY HANA PARADEISER
Associate Marketing Coordinator Marketing Coordinator
Grubb & Ellis Company Grubb & Ellis Company Bridge Commercial Properties
CA License # 01819454 CA License # 01268354
P 949.608.2033 P 949.608.2057 P 818.620.4376
C 949.231.7351 C 949.285.4265 F 949.798.5501
jason.lantgen@grubb-ellis.com tara.piercy@grubb-ellis.com hana@bridgecre.com
The information contained herein was obtained from third parties, and has not been independently verified by the real estate brokers. Buyers/tenants should have the experts of their choice inspect the property and verify
all information. Real estate brokers are not qualified to act as or select experts with respect to legal, tax, environmental, building construction, soils-drainage or other such matters. The Johnstone, Puccinelli, Lantgen Team
is a Co-Brokerage team located at both Bridge Commercial Properties and Grubb & Ellis.
JOHNSTONE | PUCCINELLI | LANTGEN