We are very proud to announce our Orange County office has been selected to represent California Therapy Solutions with their leasehold interests for their five Southern California locations…renewals and relocations!
We are pleased to have the opportunity to serve this client and for entrusting us with these responsibilities.
When you visit one of California Therapy Solutions’ five Orange County locations, you can count on expert therapeutic treatment delivered with care and compassion. Their highly-experienced therapists and staff are accessible, empathetic, and professional. You will find that their team genuinely cares about you, your health, and your life goals. To learn more, visit their website: https://www.californiatherapysolutions.com/
The Jeff Tabor Group continues to dominate law firm tenant representation in Southern California!
We are very proud to announce our Orange County office just concluded lease negotiations on behalf of Schumann Rosenberg & Arevalo for their new corporate offices located at 30 Corporate Park in Irvine. We are pleased to have the opportunity to serve this client for the second time and for entrusting us with the negotiations of their leasehold interests. Please see what they kindly wrote on our behalf the first time we represented them!
For over 20 years Schumann Rosenberg & Arevalo LLP has skillfully met its clients' needs for thoughtful and strategic litigation services. To learn more, visit their website: www.schumannrosenberg.com
We are very proud to announce our San Diego office just concluded lease renewal negotiations on behalf of Rehab United for their offices located at 3145 Rosecrans Street in San Diego.
We are pleased to have the opportunity to serve this client and for entrusting us with the negotiations of their leasehold interests. We do wish to thank Michael Mazzotta at TenantReps.com for his association on our side in getting this renewal done.
Rehab United prides themselves on providing you with the most up-to-date, evidence-based physical therapy care possible in a friendly, warm, and caring environment. To learn more, visit their website: https://www.rehabunited.com/
Distress in Office Market Spreads to High-End Buildings
Amenities gave many an advantage earlier in the pandemic, but defaults and vacancies are rising as interest rates climb Defaults
Defaults and vacancies are on the rise at high-end office buildings, in the latest sign that remote work and rising interest rates are spreading pain to more corners of the commercial real-estate market. For much of the pandemic, buildings in central locations that feature modern amenities fared better than their less-pricey peers. Some even were able to increase rents while older, cheaper buildings saw surging vacancy rates and plummeting values. Now, these so-called class-A properties, whose rents generally fall into a city’s top quartile, are increasingly coming under pressure. The amount of U.S. class-A office space in central business districts that is leased fell in the fourth quarter of last year for the first time since 2021, according to Moody’s Analytics. The owners of a number of high-end properties recently defaulted on their mortgages, highlighting the financial strain from rising interest rates and vacancies. “Any property owner that says ‘Oh we’re fine’ is a little bit fooling themselves,” said Thomas LaSalvia, director of economic research at Moody’s Analytics.
Some office landlords invested heavily in their buildings in recent years, adding spas, gyms, restaurants and modern elevators. The hope was that by modernizing their properties, these owners could benefit from a flight to quality as more tenants seek out environmentally friendly buildings with plenty of amenities and natural light. This strategy has worked for some buildings, especially those developed in the past decade. Some new buildings like One Vanderbilt in Manhattan managed to add tenants at high rents. But new leasing data and recent defaults indicate that many of these high-end properties aren’t immune to the office market’s crisis.
Take 777 South Figueroa St. in downtown Los Angeles. Completed in 1991, the 52-story tower features a lobby with 30-foot ceilings and rose-marble-covered walls, a landscaped plaza, valet parking and concierge services. Many of its tenants are financial companies and law firms, according to data from CoStar Group.
The owner, Brookfield Asset Management, recently defaulted on more than $750 million in debt backing the building and another Los Angeles tower. Meanwhile, asset manager Pimco recently defaulted on a mortgage backed by a portfolio of office buildings including Twitter offices in New York and San Francisco. Older high-end properties are struggling in part because they face competition from towers built in recent years. In downtown Los Angeles, 28 office buildings have been completed since 2000, according to Moody’s Analytics. In New York, new developments like One Vanderbilt and Hudson Yards have lured tenants from Park Avenue towers while pushing up Manhattan’s overall vacancy by adding new supply. Close to 19% of all high-end office space in Manhattan was available for lease in the fourth quarter of 2022, according to brokerage Savills, up from 11.5% in early 2019. The availability rate for top-shelf office space was slightly higher than the availability rate at cheaper class-B and class-C buildings, Savills said. Rising interest rates have hit the entire commercial real-estate sector hard. Higher mortgage costs eat into landlords’ earnings and make it harder to refinance expiring loans. Rising yields on bonds and other securities also make real estate look less profitable in comparison, making buyers more reluctant to pay high prices and pushing down property values. Real estate analytics firm Green Street recently estimated that U.S. property values are down 15% since March 2022. Not all commercial property sectors are suffering equally. While the values of hotels and rental-apartment buildings have fallen, these properties are also benefiting from inflation, which is pushing up room rates and apartment rents. Office buildings have seen a steeper drop in values partly because they are also grappling with weak demand from tenants who are cutting back on workspace. Green Street estimates that office values are down 25% over the past year.
During a recent earnings call, the president of office landlord Boston Properties Inc. Douglas Linde said many office buildings are obsolete and could be converted to other uses such as apartments. “A meaningful amount of the existing office inventory may have a higher and a better use as an alternative product, and it’s not relevant to users searching for space today,” he said.
Analysts expect office defaults to increase as more mortgages that were signed before the pandemic expire. Around $2.6 trillion in commercial mortgages are set to mature between 2023 and 2027, according to Trepp Inc. Many of these loans are held by smaller banks.
Pressure on office occupancy is expected to continue for much of 2023. Weakening demand during the pandemic era initially came from companies cutting back on space by letting employees work from home part of the week. Now demand also is tumbling because big technology companies are hunkering down and cutting expenses for fear of a possible economic downturn. Landlords who benefited from long-term leases are becoming more vulnerable as leases signed before the pandemic expire. Michael Silver, chairman of Vestian Global Workplace Services, said law firms he advises on their real estate often look to cut their space by around 30% when their leases expire. And unlike in 2021, more companies are worried about a recession and looking to cut costs. “That’s just going to contribute to overall vacancy, and it doesn’t matter whether you’re in an A building or a B building,” he said.
The Jeff Tabor Group continues to dominate law firm tenant representation!
We are thrilled to announce our Orange County office has been selected by The Yocca Law Firm LLP to represent their leasehold interests for their corporate office located at 19900 MacArthur Boulevard in Irvine, California.
We are pleased to have the opportunity to serve this client and for continuing to entrust us with the negotiations of their leasehold interests.
The Yocca Law Firm LLP, a business and employment litigation firm, has decades of experience in winning difficult cases, successfully litigating with and against the largest multi-national law firms. Its lawyers combine the depth of experience found in large firms, with the responsive service and personalized approach of a small firm. To learn more, visit their website: https://yocca.com/home/
We are very proud to announce our Century City office just concluded lease renewal negotiations on behalf of Atkins Research Global for their corporate offices in Beverly Hills, California.
We are pleased to have the opportunity to serve this client for the second time and for entrusting us with the negotiations of their leasehold interests. We are happy to have continued success in negotiating across the table from the large Los Angeles landlord, Jamison Properties!
Atkins Research Global is a full-service facility that offers a complete range of qualitative and quantitative research capabilities. They can help you at every stage of the process, from as simple as a hosting a focus group to full-service project design, moderation, and reporting and analysis. To learn more, visit their website: https://www.atkinsresearch.com/
We are very excited to announce one of Southern California’s largest law firms has engaged the Jeff Tabor Group to represent them in the negotiations of their 20,000 square foot leasehold in Downtown Los Angeles! While we are precluded, for confidentiality reasons, for disclosing the identity of this new client for the time being, suffice it to say, we are very proud of this new relationship. Further, it shows our continued dominance in the industry of the representation of law firms for all their leasehold matters!
We are thrilled to announce Jeff Tabor Group has been selected by Magee & Adler to represent their leasehold interests for their corporate office located at 400 Oceangate in Long Beach, California. This marks the third time we have represented this law firm!
We are pleased to have the opportunity to serve this client and for continuing to entrust us with the negotiations of their leasehold interests.
Magee & Adler serves the legal needs of individuals, families, closely-held and family-owned businesses, individual and corporate trustees, trust beneficiaries and tax-exempt charitable organizations. To learn more please visit their website: https://mageeadler.com/
The Jeff Tabor Group continues to dominate law firm tenant representation!
We are thrilled to announce the close of lease renewal negotiations on behalf of Callister, Broberg & Becker for their corporate offices in Glendale, California.
We are pleased to have the opportunity to serve this client for the third time and for entrusting us with the negotiations of their leasehold interests.
Callister, Broberg & Becker's practice includes preparation of wills and traditional inter vivos or living trusts (which the firm has been drafting for over 35 years), as well as more advanced planning techniques such as irrevocable trusts, estate insurance planning, family limited partnerships and limited companies, private foundations, charitable remainder trusts, and retirement plan distribution planning. To learn more, visit their website: http://www.callisterlawfirm.com/index.php
Who does one of Southern California’s top patent/intellectual property law firms retain, for the second time, to represent them on their current/future leasehold negotiations, as well to challenge their building operating expense pass throughs? Well, Stetina, Brunda, Garred & Brucker retained the best Southern California “tenant only” commercial real estate advisor around - The Jeff Tabor Group…that’s who! We are very pleased our Orange County office was retained once again!
Stetina Brunda Garred & Brucker is a prominent AV- rated patent, trademark and copyright law firm strategically located in South Orange County, California. To learn more, visit their website: http://stetinalaw.com/index.html
We are thrilled to announce the close of lease renewal negotiations on behalf of Nortridge Software Company for their 14,000 square foot corporate office headquarters located at 27422 Portola Parkway in Foothill Ranch, California.
We are pleased to have the opportunity to serve this client for their second renewal and extension negotiation. Initial broker prior to Jeff Tabor Group? CB Richard Ellis. Our client wisely went with a business model focused 100% on the tenant’s best interests…no conflict of interest issues here! I do wish to thank, however, Mr. Gregg Haley of CB Richard Ellis, for his very professional efforts representing the landlord throughout this negotiation.
Nortridge Loan System aims to align with your business requirements to help your organization meet its goals. NLS is the culmination of years of asking the right questions and listening to their clients. To learn more, visit their website: https://www.nortridge.com/
Our Orange County office just received the letter above…very proud of it! 99.999% of commercial real estate advisors cannot produce testimonials like this as once they complete a transaction they do not maintain contact with the client…they are on to a bigger, better deal! How do I know that? Well, the typical objection we find when introducing ourselves to a prospect is “No thanks, I already have a broker”. But when then asked “Great, with whom are you working?” 99 out of a 100 cannot even remember whom they used. A sad fact but I turn it in to a huge positive…as the above testimonial attests…
We are proud to announce Jeff Tabor Group has been selected to represent IQA Solutions to represent their leasehold interests for their 11,000 square foot corporate office headquarters located at 4089 E. Conant Street in Long Beach, California.
We are pleased to have the opportunity to serve this client and for entrusting us with the negotiations of their leasehold interests.
Established in 2003 and located in Long Beach, California, IQA was formed to provide engineering and design services to clients in petroleum refining and petrochemicals. To learn more, visit their website: https://www.iqasolutions.com/
The Jeff Tabor Group continues to dominate law firm tenant representation in Southern California!
We are thrilled to announce Jeff Tabor Group has been selected by Wall McCormick Baroldi & Dugan to represent their leasehold interests for their corporate office located at 515 N. Cabrillo in Santa Ana, California. This marks the third time we have represented this law firm!
We are pleased to have the opportunity to serve this client and for continuing to entrust us with the negotiations of their leasehold interests.
Since 1985, Wall, McCormick, Baroldi & Dugan has been providing workers’ compensation defense for employers, third-party administrators and insurance companies. The firm specializes in workers’ compensation defense, subrogation, defense of 132a Discrimination claims and Serious & Willful Misconduct allegations. To learn more, visit their website: https://wmbsa.com/
We are proud to announce Jeff Tabor Group has been selected to represent Royal 4 Systems to represent their leasehold interests for their corporate office headquarters located at 5000 E. Spring in Long Beach, California. Their previous brokers were Cresa Partners and Lee & Associates.
We are pleased to have the opportunity to serve this client and for entrusting us with the negotiations of their leasehold interests.
Royal 4 Systems has over 38 years of experience integrating and programming configurable Warehouse Management System Solutions. To learn more, visit their website: https://www.royal4.com/
We are proud to announce Jeff Tabor Group has been selected to represent Nortridge Software Company to represent their leasehold interests for their 10,000 square foot corporate headquarters located in Foothill Ranch, California.
We are pleased to have the opportunity to serve this client for the second time and continue yet another long-term relationship.
Nortridge Loan System aims to align with your business requirements to help your organization meet its goals. NLS is the culmination of years of asking the right questions and listening to their clients. To learn more, visit their website: https://www.nortridge.com/
I am very proud to announce that Farmers Insurance has, for the second time, engaged the Jeff Tabor Group to spearhead the leasehold negotiations for their large South Orange County office space requirements!
I might add that when I first called on this firm over seven years ago the Regional Manager exclaimed “Even if you have the cure for cancer there is no way/no how I am ever changing brokers!” (Lee & Associates.) Following what was supposed to be a three minute meeting (which ended up to be over one hour), the Regional Manager exclaimed “I started this meeting out by saying I am all about loyalty. But I am not about blind loyalty…I am going with you!”
I am very proud indeed! Thank you, Farmers! I will do you proud once again!
We are proud to announce Jeff Tabor Group has been selected to represent Testronic to represent their leasehold interests for their corporate office headquarters located at 250 E. Olive St. in Burbank, California.
We are pleased to have the opportunity to serve this client and for entrusting us with the negotiations of their leasehold interests.
Testronic developed services like Localization, Localization QA testing, and Player Support with the same passion and attention to detail as their flagship Functionality QA service. Their mission is to truly understand their partners, and their customers so that they help create entertainment experiences that exceed expectations. To learn more, visit their website: https://www.testroniclabs.com/
We are proud to announce the finalization of lease negotiations on behalf of our client, Blue Point Health Group, to represent their leasehold interests for their new corporate headquarters to be located in Santa Monica, California. We have also previously represented them in Pasadena, California.
We are pleased to have the opportunity to serve this client for the second time and continue yet another long-term relationship.