It can be a tough market for office owners these days with many tenants continuing to implement remote and hybrid work policies and businesses trying to cut costs amid higher interest rates. So, a lease renewal of more than 100,000 square feet stands out.
Raytheon, a company focused on aviation, space and defense, signed a renewal for 121,136 square feet at the Santa Barbara Research Park in Goleta, California. The lease called for no reduction in square footage leased.
In recognition, the deal was awarded the 2024 CoStar Impact Award for lease of the year for the Santa Barbara/Santa Maria/Goleta market, as selected by an independent panel of local industry professionals.
The property is an office, as well as a research and development, building in the heart of Goleta's tech corridor. Around the country, a number of properties with an office component have had reduced occupancy because of hybrid and remote work as well as cost reductions by companies in an era of higher interest rates.
The Santa Barbara Research Park, near U.S. Highway 101, was last sold in 2014 for $26.45 million.
About the Deal: Raytheon agreed to a five-year renewal for its longtime building at 75 Coromar Drive. One of the world's largest intelligence services providers and defense manufacturers by revenue and stock market value, the company has fully occupied the property for nearly two decades, according to CoStar data. The research park is less than 20 minutes from Santa Barbara Municipal Airport.
What the Judges Said: "75 Coromar Drive represented one of the largest leases within the county over the last few years and was completed in a challenging market for large office spaces," said Jason Hart, broker and owner of Hart Commercial Real Estate.
They Made It Happen: Steve Hayes and Francois DeJohn with Hayes Commercial Group in Santa Barbara represented the landlord.