Real Estate Advice For Orange County Startups | Part 3 of 3

Thanks to OCSC Bronze Sponsor Savills for this valuable information about Commercial Real Estate:

Securing Real Estate For Orange County Start-Ups Requires Careful Planning And Good Timing | Part 3 of 3

By Jeff Manley, Senior Managing Director & Board Member

Why grow in Orange County?

Although rents in Orange County in the current market remain high, with gross asking rent in Irvine averaging $3.05 per square foot for Class A office and $2.05 per square foot for R&D, you will still enjoy a cost-saving advantage when you locate your headquarters in Orange County.

A glance at the average office rents in Orange County and how they compare with other U.S. markets will give you an idea of what to expect when you enter negotiations for your lease.

Tustin, Santa Ana, and parts of Irvine are less expensive, as well as outlying areas acceptable to start-ups that want to dodge the $3.00-$5.00 per square foot rents that are becoming the norm in the John Wayne Airport and Irvine Spectrum areas.  Another key advantage for start-ups is that Orange County doesn’t levy any city taxes on the gross receipts/revenues of a company, unlike much of greater Los Angeles.  

The success of your start-up will depend on your business plan, the market you are entering, and your own talents and capabilities. Amid the many urgent priorities competing for your time and attention, it can be easy to overlook the importance of your company’s commercial real estate choices. Keep in mind, however, that your rent and the provisions that govern your lease are significant financial factors that can support—or slow—your company’s growth.

Working with an experienced real estate advisor will make your real estate learning curve a lot shorter. You can rely on your representative’s knowledge to guide you through the careful planning, good timing, and skillful lease negotiations that will secure optimal cost savings for your start-up’s headquarters.

Savills is a leader in analyzing space needs for businesses to help set goals and expectations, create solutions, and smartly manage and deploy resources in securing office, R&D, and industrial spaces. Jeff Manley based in OC can be reached at jmanley@savills.us or 949-706-6617.

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