DAUM Commercial Real Estate Services, a leading provider of commercial real estate services including brokerage, tenant representation, consulting, leasing, sales, and property management, has completed the sale of a 104,734 square-foot Class A office property. The building was sold for a total consideration of $19 million. Danielle Knudson, Executive Vice President at DAUM Commercial Real Estate and Christopher Migliori, SIOR, Executive Vice President at DAUM Commercial Real Estate represented the buyer.

“The overall office market continues to navigate challenges due to the post-pandemic declines in tenant interest, sales volume, lease rates and absorption. The discount in price for the office building offered a great opportunity to purchase a new location for the seasoned mechanical contractor. The new office will support more than 250 employees,” says Migliori.

According to DAUM Research as of the middle of Q4 2023, overall office vacancies in the Orange County, Calif., market rose 47 basis points to 18.1 percent, putting mild downward pressure on rents. Net absorption was -399,004 square feet at the start of Q4. However, the economic environment within Orange County and the U.S. overall remains generally positive. Employment continues to grow, though at a substantially slower pace with forecasted growth rates in the county below 1 percent for this year compared to 2.3 percent growth in 2023.

Originally built in 1986, the property located at 5995 Plaza Drive offers five floors of open plan office space with an average floor size of 21,000 +/- square feet. The site also includes 461 surface parking spaces for tenant use. Located in the northwestern section of Orange County, the building is in Cypress, an incorporated community of around 50,000 people which is strategically situated between Anaheim and Long Beach.

The buyer of the building is Murray Company, a leading mechanical contractor headquartered in Southern California. As owner/occupier they purchased the property at an estimated 30-35 percent of replacement value. Murray expects to occupy most of the building for their corporate offices, with over 250 employees eventually working out of the new office. A slate of improvements is planned for the property and, when completed, 5995 Plaza Drive is expected to be a highly coveted, top tier office building in the region.

Chris Migliori and Danielle Knudson of DAUM Commercial represented the buyer, Murray Company. Tom Sheets and Quint Carroll of CBRE represented the seller of the property in the transaction.

About DAUM Commercial
DAUM Commercial Real Estate Services is a leading provider of commercial real estate services including brokerage, tenant representation, consulting, leasing, sales and property management. Founded in 1904, DAUM focuses on longstanding client relationships and draws upon its century-long track record to deliver steadfast insights and proven results to clients across the U.S. DAUM has 11 offices throughout Southern California and Arizona. More information is available at www.daumcommercial.com.