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Salas, Diana From: Christine Denny-Helvig <cdennyhelvig@msn.com> Sent: Sunday, January 19, 2020 4:17 PM To: eComment Subject: FW: 2019 Data Shows 2525 Main St. is a Viable Commercial Office Space Location Attachments: 2525-Compound Impact of ALREADY APPROVED Developments - Assumptions.docx Importance: High Dear Santa Ana City Council Members, I realize it's possible that many of you have made up your minds regarding how you will vote on the developer's proposal for 2525 North Main St. this Tuesday, 1/21/20. On the chance that any of you are still willing to consider recently published analyses reflecting 2019 data, I would like to share results of research performed byJLL, the second largest commercial real estate services firm in the world, which speaks to the point that 2525 is an ideal site for NEW low- to mid -rise office space, the leasing of which outpaced high rise office space by a 6 to 1 ratio in Orange County in 2019. I encourage you to read the article it in its entirety: https://www.globest.com/2020/01/10/mid-rise-product-leads-office-leasing-in- oc/?slreturn=20200019004148 Some interesting quotes (underlining is mine): "The surge in office leasing activity for this product segment is largely attributed to new construction activity." "We are seeing a lot of activity in the new buildings, Jeff Ingham, senior managing director at JLL, tells GlobeSt.com. "2019 today on the office side are very much looking for the new latest and greatest projects that have all of the amenities and indoor -outdoor space Those are the things that are really attractive to employees and drive retention." "Tech companies and medical companies are leading the leasing activitv in mid -rise office space. These companies are expanding and leading demand in general in the market and they gravitate toward mid - rise and low-rise assets. 'If you look at the groups that are leasing low rise space, the bulk are tech, medical device and life science -type companies; says Ingham. 'There has also been a lot of demand in co -working as well. Our local market growth is also in those three categories."' In addition, 4Q19 analysis by VoitWorks quotes that North Orange County had the lowest vacancy rate (7.17%) in Orange County in 2019 (https://voitworks.com/2020/01/commercial-real-estate-news/voits-g4-2019-oc- office-ma rket-re port-2020-forecast-just-re leased/): "Nearly 1.39M SF of space has been delivered in the OC office market since Q12019, expanding the office base by 1.2%. This has contributed to the uptick in overall vacancy. Direct / sublease space