While Orange County’s office market continues to face challenges, recent investments are showing signs of life in the region. In one recent transaction, mechanical contractor Murray Co. acquired a Class A office property in Orange County for $19 million, or about $181 per square foot, the Los Angeles Business Journal reported. The 105,000 square foot property was sold by Healthcare Realty Trust Inc.
Daum Commercial Real Estate Services, represented by brokers Danielle Knudson and Christopher Migliori, facilitated the transaction for Murray Co. On the other side, CBRE’s Tom Sheets and Quint Carroll represented the seller, Healthcare Realty Trust Inc.
The property, located at 5995 Plaza Drive in Cypress is intended to serve as Murray Co.’s new corporate office to support over 250 employees, per the report. The property features a five-floor building and an additional 460 surface parking spaces.
Headquartered in Rancho Dominguez with offices in Thousand Oaks, San Diego and Northern California, Murray Co. was founded in 1913. The firm is the Southwest region’s leading full-service mechanical contractor, according to its website.
The Orange County office market continues to rebound, following years of difficulty. According to a CBRE Orange County office market for the fourth quarter of 2023, vacancy in the market is at over 14 percent and absorption remains in the negative. However, the report shows that net absorption declined at a less accelerated rate than earlier in the year, finishing the quarter at negative 189,672 square feet. Average lease rates are also slightly down from $2.87 to $2.86 quarter-over-quarter.
