Hyundai Signs R&D Industrial Lease in SoCal
By Nick Trombola January 23, 2025 3:07 pm
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Hyundai is updating its digs in Southern California with the signing of a new industrial pre-lease in Orange County.
Hyundai’s research and development subsidiary Hyundai America Technical Center inked the 91,600-square-foot lease with developer and landlord Dermody Properties at LogistiCenter at Irvine II, at 2 Sterling in Irvine, which is expected to open later this quarter. CBRE (CBRE)’s Ross Bourne, Keith Black and Nick Spatafore represented Dermody in the deal.
“The leasing activity at LogistiCenter at Irvine II is indicative of the strong demand for modern industrial facilities in prime locations,” Bourne said in a statement.
Hyundai’s R&D affiliate entered Orange County in 2003 with a 90,000-square-foot lease at 81 Bunsen, located west of Interstate 5 from 2 Sterling. It wasn’t immediately clear if Hyundai will keep both locations or relocate from 81 Bunsen to its new space once it’s complete.
Meanwhile, Dermody is also in the midst of developing LogistiCenter at Irvine I, a 133,320-square-foot industrial property set to finish construction later this year. Both buildings are southeast of I-5 from Irvine Spectrum, a 5,000-acre mixed-use district with some 38 million square feet of commercial space.
The industrial market at Irvine Spectrum outperforms the rest of Orange County due to strong demand, according to recent CBRE data, with a vacancy rate of just 0.7 percent compared to the countywide average of 3.1 percent.
Nick Trombola can be reached at ntrombola@commercialobserver.com.
