Key Takeaways
- Irvine Company Office Properties finishes fiscal year more than 90% leased across portfolio, well above industry average of 80% according to Moody’s Analytics
- The Company’s financial strength, stability and commitment to reinvestment drives leasing momentum with more than $560 million of capital invested across the portfolio in FY24
- 10.4 million square feet of premium office space leased over the past 12 months, surpassing the previous fiscal year by 1.1 million square feet
IRVINE, Calif. (August 12, 2024) — Irvine Company today announced that its portfolio of premium office space across Orange County, Los Angeles, San Diego, Silicon Valley, Chicago and New York closed the 2024 fiscal year (July 1, 2024 – June 30, 2024) at over 90% leased with 10.4 million square feet leased over the last 12 months – a nearly 12% increase in square footage compared to the 2023 fiscal year.
According to Moody’s Analytics these results outperform the U.S. office market overall lease rate by 10%. Irvine Company attributes the continued success to its high-quality portfolio and ability to connect customers with the right workplace that aligns with their business and workforce needs. The company also cites its financial strength and stability as increasingly important factors in the workplace selection process.
As companies continue to evolve their workstyles and workplace strategies, Irvine Company remains a leader in customer retention. Irvine Company completed the signing of key renewals totaling 6.9 million square feet in FY24.
“Our fiscal year results show there is significant demand for premium office space, and highlight the importance of choosing not only where your company works, but who your landlord is,” said Roger DeWames, President of Irvine Company Office Properties. “With Irvine Company’s financial strength and stability, we’re able to invest in our workplaces, offer our customers flexible lease options and provide the workday experience that companies and their teams want and succeed in.”
Over the past 12 months, Irvine Company has invested more than $560 million of capital across its portfolio, covering reinvestment and operating capital, workspace improvements, amenity offerings and more. This includes the completions of a $10 million outdoor workspace reinvestment at Santa Clara Gateway in Silicon Valley, a close to $19 million reinvestment at the iconic 2121 Avenue of the Stars which included a hospitality-inspired meeting and event venue in Century City, and a $200 million transformation at the renowned MetLife Building at 200 Park Avenue in New York, NY..
Irvine Company recently announced it assumed full ownership of the 3.1 million square-foot MetLife Building at 200 Park Avenue. The decision to purchase the remaining minority interest in the building supports Irvine Company’s long-term ownership approach and continued investment in its premium workplaces.
The Company also reported strong customer demand for its Flex+ product in FY24, which is tailored primarily to mid-sized and small businesses, with private, move-in ready spaces and flexible leasing terms that allow companies to easily scale as business needs evolve. Over the past 12 months, Irvine Company leased 1.9 million square feet of Flex+ space – a 28% increase from FY23.
“We continue to provide best-in-class service and solutions that meet each of our customers’ unique business needs and workplace strategies,” said DeWames. “This allows our customers to lease with confidence knowing they have a trusted partner committed to their success.”
“Our company’s success has been driven by our most important asset – our people – and our new premier workplace at Santa Clara Gateway supports our workforce strategy to bring teams together to innovate and bring solutions to fruition,” said Yoonsung Jung, CFO of LG Technology Ventures. “Irvine Company was a true partner in the leasing process and meeting our business needs, making it easy to lease office space in a prime location with welcoming indoor-outdoor amenities.”
“When we were looking to upgrade our workplaces, Irvine Company’s ability to bring our vision to life in the Los Angeles and Orange County markets were driving factors in our decision to move to 2121 Avenue of the Stars and 400 Spectrum Center,” said Gilly Malmquist, Senior Director, Workspace & Real Estate of Armanino. “2121 Avenue of the Stars and 400 Spectrum Center meet all of our needs to provide the best possible locations for our teams to come together. From convenient on-site amenities to proximity to hundreds of high-end dining and retail destinations, our new offices will amplify our culture and elevate the workday experience.”
“Our new space at 300 North LaSalle reflects White & Case’s continued upward momentum in the Chicago legal market, and our commitment to offering a world-class working environment to our people and leading legal services to our clients,” said the Firm’s Chicago Office Executive Partner, Matthew Devine. “Our Chicago office continues to go from strength-to-strength, and working closely with Irvine Company, our new space reflects this growth. It will serve as a point-of-entry in the Midwest market to the full array of preeminent legal services that we provide to clients around the world.”
About Irvine Company Office
Irvine Company elevates the workplace by combining inspired design, exceptional quality, innovative solutions and experience-driven amenities. Renowned for continual evolution, reinvestment and personalized service, Irvine Company creates environments that cultivate collaboration, creativity and customer success. The company serves more than 3,000 customers in 54 million square feet of workplaces in Orange County, Los Angeles, Silicon Valley and San Diego, with iconic towers in Chicago and New York. Irvine Company leads the industry with a forward-looking mindset and commitment to creating thriving communities.
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Media Contact
Gemma Stewart
562-544-5797