ORANGE COUNTY
TechSpace Signs
$25M Lease
With Rreef
TechSpace, a provider of flexible office
space and information technology services, has signed a $25-million lease that
runs through 2017 at two buildings
owned by Rreef at 65 and 75 Enterprise
at the Summit Office Campus. The deal
is a renewal for 86,400 sf for TechSpace,
which was represented by Scott John-stone of Grubb & Ellis.
TechSpace provides a flexible full-service office environment with technology support through a Tier 1 data
center. Flexible lease terms allow
room for upsizing or downsizing as
necessary, including everything from
workstation furniture, advanced voice
and data telecommunications, IT infrastructure, reception services and office supplies.
The TechSpace approach is designed
to provide tenants with “the ability to
grow their businesses without making a
long-term commitment to occupancy
nor a capital investment to the space,”
says Vic Memenas, chief operating officer of TechSpace. The option is popular with small- to medium-sized
businesses, he says.
Based on client input and surveys,
TechSpace is planning significant improvements to the facility including
upgrades to the café and common
areas designed for friendlier client
use. In addition, substantial renovations will be undertaken to reconfig-ure suites to meet the needs of
TechSpace clients.
Rreef bought the buildings at 65 and 75
Enterprise, which total about 483,000 sf,
from Ohio State Teachers Retirement System for about $100 million in the summer
of 2004, according to a GlobeSt.com report
at the time. The 1.7-million-sf mixed-use
Summit Office Campus is being developed
by Aliso Viejo-based Parker Properties and
Rreef, the project’s common financial partner.—Bob Howard, GlobeSt.com
Five Questions for Brian P. McGowan
Brian P. McGowan is California’s deputy secretary for economic development and commerce,
appointed by Gov. Arnold Schwarzenegger in
December 2007. He began serving in January
as the secretary of business, transportation and
housing ex officio, voting member. Prior to his
appointment, McGowan was administrator of
Economic Development Agency for San
McGowan Bernardino County, manager of Economic Development for Ontario, and an economic devel-
opment coordinator for Palm Springs.
McGowan has also championed international initiatives for local gov-ernmen. He helped build trade ties with Mexico and has assisted Bulgaria and Serbia in creating economic development programs through
the United States Agency for International Development.
McGowan discussed his new role and fielded general questions on
the state’s economy with Real Estate Southern California editor Don
Jergler. (For the complete interview, go to www.globest.com/reso-
cal/09_08/ 5questions.html.)
With the economy and real estate in a bad spot, is California currently
still a good place for investment?
McGowan: Of course it is. California’s the eighth largest economy in
the world and our overall economy is still growing. Gov.
Schwarzenegger often refers to our economy as a nation state. It’s
so big and diverse. It’s that diversity and complexity that makes it
particularly resilient. In California, we’re seeing continued growth in
many sectors, and that’s another reason why California is the best
place in the world to do business.
California supposedly leads the nation in foreign direct investment.
How does this affect our economy?
McGowan: California currently has 10% of the market share in the US in
foreign direct investment. In 2007, firms invested $50 billion in the US, which
created more than 100,000 new jobs, a 25% increase over 2003. Over the
last five years, California attracted 400 projects from over 300 companies,
which created about 40,000 jobs in California alone. It’s a great thing.
Some people view “going green” as an added cost to the already high
cost of doing business in California. Do you agree or disagree?
McGowan: In the long run, businesses are discovering that with the
high cost of fuel, the return on investment of going green is becoming
a shorter period of time. Nowadays, if you’re not building green, you’re
making a huge mistake.
What can be done to create more affordable building opportunities
in California?
McGowan: Are we more expensive than Wyoming and Arkansas? Sure.
But California offers so many more amenities than these other states.
You’ve really got to compare it to Shanghai, London or Berlin, and if you
look at those places, we’re comparatively affordable. This administration
is aware of the cost to do business, and the cost of housing in California,
and they’re addressing those issues as best they can. The voters approved Prop. 1C to spend $625 million for affordable housing in California, so this administration is recognizing the fact that California is made
up of all different types and economic strata.
Parts of California are in need of serious infrastructure improvements.
What can be done now to start solving these issues?
McGowan: The governor pushed and supported and Prop. 1B, a $20-bil-
lion transportation bond that was approved, to rebuild and help improve
infrastructure issues. That kind of infrastructure is a federal issue, but
I think California and the governor have been leading the way to bring
attention to the country’s infrastructure deficit. We’re not going to wait
for the federal government to take care of our problems. We’re going to
take care of our own problems.
