Stream Realty Partners Closes $7 Million In Leasing Transactions Across Southern California

Stream Realty Partners continues to find opportunities for tenants seeking office, industrial, and flex spaces in Southern California despite a sluggish nationwide commercial real estate market.

Stream, a national commercial real estate firm offering an integrated platform of services, has a core office in Irvine that has closed 14 transactions valued at $7 million in the last several months. Lease and sublease deals have ranged from 1,100 square feet to 9,054 square feet for a total of 51,160 square feet. Six of those transactions involved companies that are new to Orange County.

Jarret Stinger, an Associate with Stream Southern California’s investment sales division, said the deals included:

• Representing Endurant Energy in three transactions to help them expand in the Inland Empire (an industrial warehouse), San Jose (an industrial warehouse), and Irvine (new headquarters office).
• Representing the owner of 32 Mauchly in Irvine in a lease that included Eurofins, an $11.6-billion company. The building is now available for sale as a leased investment, with Stinger serving as the broker.
• Representing a regionally renowned chiropractor in a relocation to a facility with an ocean view in San Clemente.
• Completing four deals that helped local trades (two HVAC professionals plus an electrician and plumber) expand their operation within Orange County.
• Representing a multi-city medical group that purchased a fully leased medical facility.
• Helping a large, local nonprofit relocate to a submarket that more suits its current needs.

Many of these leases­–companies involved asked not to be identified–were for shorter terms than usual, Stinger said. “Tenants are seeking and receiving one- or two-year leases rather than the three- to five-year deals that owners and landlords are typically used to,” he noted.

Among the buildings tenants are moving to in Southern California include 100 Spectrum Center Drive and 2082 Business Center Drive in Irvine; 9155 Archibald Ave. in Rancho Cucamonga; and 3230 E. Imperial Highway in Brea.

Stinger, a Southern California college graduate and long-time resident, said he has noticed several trends, especially in Orange County where vacancy is at 2.2% in South County, that commercial real estate brokers will likely encounter in the next few years:

• Owners and landlords are more likely to provide free rent to tenants as an incentive versus making major improvements to a building. “That’s likely due to the lack of liquidity owners are having now.”
• Clients that are looking to buy properties are changing their minds and leasing right now due to the increase in interest rates.
• Lease renewals will be common for the next 12 months as companies wait to see what happens with the markets.

Stream recognizes that every day brings new insights and fresh predictions on how the commercial real estate industry will be affected by rising interest rates, bank instability, and the overall U.S. economy. The firm aims to keep its clients ahead of challenges and in front of opportunity.

Contact Stream Southern California for any questions about leasing office, industrial, or flex spaces.