Inland office projects filling up
Inland tenants commit to moves before last nail is driven
Large Inland office buildings continue to look like a safe bet for developers. Three of the most ambitious projects in Inland Southern California are going up on schedule, developers say.
More important, perhaps, tenants are falling into place, say the people responsible for getting the projects occupied.
HavenPark, developed in Rancho Cucamonga by Beverly Hills-based The Hileman Co. LLC, is an indicator of how well Inland office projects are doing. The $60 million mixed-use development's office components, two 75,000-square-foot buildings, are six months from completion but fully leased.
Just Mortgage Inc. has agreed to move its headquarters from Pomona to 60,000 square feet at HavenPark, said Jack Hileman, president of The Hileman Co. Co-Op Financial leased the other building at HavenPark in December.
At the Silverhawk Corporate Center in Murrieta, in one of two 40,000-square-foot, two-story buildings, occupants are in talks to buy about 30 percent of the space, said Dan Yeilding, an associate office broker with CB Richard Ellis' Temecula office.
The other building, offered exclusively for lease, has seen plenty of interest, he said, but no tenants have finalized agreements yet. The first tenants should arrive in August, said Yeilding, who envisions businesses ranging from attorneys and financial offices to tech and real estate firms.
Work continues on one of HavenPark's two office buildings in Rancho Cucamonga. The Hileman Co. LLC project is still six months from completion, but tenants are lined up for both of the 75,000-square-foot buildings, said Jack Hileman, the company's president.
"Generally, lease tenants wait until we're a little bit further along," he said.
At the Crossroads Corporate Center, also in Murrieta, construction remains on schedule for the second of four buildings to open by June, said Mary Piper, of Lee & Associates Commercial Real Estate.
The view from one office building going up is of another new building. Office space is going up to serve a surging Inland-area population.
Commerce Bank of Temecula Valley and architects Riley, Garrison & Associates Inc. have signed on for nearly 18,000 of the building's 75,486 square feet, Piper said. Other tenants are close to finalizing lease agreements. Construction will begin on the third building after the second building is significantly leased, she said.
Some who study the Inland real estate industry say more office growth is needed to catch up with the population growth.
Empire Cos. spokesman Louis Desmond said his company is planning a 94,000-square-foot office project south of Corona.
The unnamed project, a spokeswoman said, doesn't yet have start or completion dates.
Corona's vacancy rate hovers between 1 percent and 1.5 percent, Desmond said, and the proximity of several new or planned high-end residential projects means the project has good prospects for success.
"A number of high-income professionals are moving into the region," he said. "They're going to need a place to work if they're going to get off the 91 freeway."
in the works
Office projects being built, their square footage and locations:
HavenPark, 150,000, Rancho Cucamonga
Silverhawk Corporate Center, 80,000, Murrieta
Crossroads Corporate Center, about 75,000, Murrieta
Unnamed project, 94,000, Corona
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