Office projects mark milestones
10:00 PM PDT on Sunday, August 27, 2006
Construction has begun on what is being called the largest Class A office project - slightly more than 400,000 square feet at build out - ever developed in Riverside or San Bernardino counties.
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Empire Corporate Plaza will be built on 15 acres in Rancho Cucamonga, between Utica Avenue and Fourth Street, said Linda Daniels, the city's director of redevelopment.
The project will be built in two phases. The first phase will include three two-story buildings that will cover 84,600 square feet each. Phase two will include two buildings, each of which will cover 75,600 square feet, according to a release by the city.
Empire Corporate Plaza, which broke ground this month, is being developed without signed tenants by IDS Real Estate in Los Angeles. The first tenants are expected to move in during the second quarter of next year.
Officials with IDS Real Estate could not be reached for comment. It was not known how much the project will cost or how many jobs it will create.
All of the buildings will be leased only, said Tom Pierik, senior vice president with Lee & Associates Commercial Real Estate Services Riverside.
Rancho Cucamonga officials hope Empire Corporate Plaza, which will be located next to Empire Lakes Golf Course and a short drive from Ontario International Airport, will attract a corporate headquarters or two, something the two-county region has struggled to do even as it has attracted more office projects.
"We're definitely hoping for some high-end corporate users," Daniels said. "Because of the size and design of the buildings, they have a lot of flexibility. A lot can be done with them."
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Office projects are coveted by cities because they often attract high-paying, white-collar jobs. They also help alleviate traffic congestion by giving people a chance to work closer to home.
The project is unique in Rancho Cucamonga. The closest thing to it, Daniels said, is a 90,000-square-foot Class A project under construction across the street from City Hall.
"But that is only going to be one building," she said. "This is going to cover a lot more ground when it's finished."
Rancho Cucamonga officials have received two inquiries about Empire Corporate Plaza: one from an Inland Empire company interested in leasing there and an Orange County company that would consider moving there.
Daniels declined to name either of those firms.
Empire Corporate Plaza is expected to lease at $1.55 a square foot, Pierik said.
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"I think it could easily end up a corporate headquarters, not the whole thing but maybe one or two of the buildings," said Pierik, who is seeking tenants for Empire Corporate Plaza. "People are looking for one- and two-story buildings now, instead of the big high rises, because they're more convenient. It's a lot easier to get in and out of than a high-rise.
"We're going to go after high-end corporate users," Pierik continued. "Those don't come available that often, but we feel like we're going to be well-positioned to attract them."
Offices planned for Victorville
Even the High Desert is starting to get its share of office development.
Midtown Spectrum is scheduled to break ground in October and will be the High Desert's first professional office building since 2004, according to a release by CB Richard Ellis Ontario, the development's broker.
Approved by the city of Victorville, Midtown Spectrum will cover 56,800 square feet and include a 36,000-square-foot office building and 20,800 square feet of food and retail space, according to the release.
Midtown Spectrum will be built at the northeast corner of Amargosa Road and Midtown Drive. The developer is AyZar Development in Irvine. The office building will be for lease only, said David Waggoner, an associate with CB Richard Ellis Ontario.
No deals have been signed, and lease rates haven't been determined, said Waggoner, who is marketing Midtown Spectrum along with First Vice President Natalie Bazarevitsch and Associate Brian Barasch.
Midtown Spectrum will be built in one phase. Medical clients are the highest priority among potential tenants, Waggoner said.
"The developer has identified a shortage of medical tenants in the community, so we're going to go after that first," Waggoner said.
"After that it will probably be the usual professional services, like law firms and real estate."





