Prepared for Apex Photonics
Rent comparison
17871 Mitchell North, Suites A + B · Current lease, proposed expansion and market alternatives through June 2032
OCTOBER 2026PREPARED BY MARK REYNOLDS
Summary
The proposed rates fall within today's market range
Proposed · Year 1 contract rate
$2.37
per RSF/mo NNN, Suites A and B, July 2027
Proposed · Year 1 effective rate
$1.86
spread over all 19,700 RSF, with Suite A billed on 4,250 RSF
Available now · asking
$2.28–$2.90
Options 2 and 4–7; average $2.61
Completed deals · signed avg
$2.36
NNN starting rents, comps 3 and 4, signed Mar 2026; comps 1 and 5 asked $2.60 and $2.24
- Suite A starts at the Suite B rate on July 1, 2027 ($2.37/RSF/mo NNN) with 4% annual increases: $2.37, $2.46, $2.56, $2.66 and $2.77 in Years 1–5. Each falls inside the range of the market options for the same year.
- Suite A is billed on 4,250 of its 8,500 RSF through June 2029. Across the full premises that is an effective $1.86 in Year 1 and $1.93 in Year 2, below every market option shown.
- Market options are modeled on the asking rate, 3.75% annual increases, 3 months free. The cheapest two carry constraints: 2950 Airway Ave is a 30,000 RSF single-tenant building, and 1601 E Saint Andrew Pl is a sublease that ends October 2029.
- Not reflected in the rates: the landlord's turnkey improvements and $60,000 FF&E allowance under the proposal, and the cost of relocating.
Year-by-year comparison
Base rent in effect each July 1, $/RSF/month, through June 2032
| Lease year | (a) Current | (b) Proposed | (c) Available for lease now · 3.75% increases, 3 months free | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Suite B lease | Suite A4% increases | Suite Bextended | EffectiveA + B on 19,700 RSF | Option 117991 Cowan23,500 RSF | Option 22950 Airway Ave30,000 RSF | Option 31432 Edinger Ave10,000–15,500 RSF | Option 417800 Mitchell North16,000 RSF | Option 52182 Dupont Dr11,500 RSF | Option 63100 Red Hill Ave13,000 RSF | Option 71601 E Saint Andrew Pl22,000 RSF | AverageOptions 2, 4–75 | |
| Year 1July 1, 2027 | $2.37 | $2.37 | $2.37 | $1.86 | – | $2.28 | – | $2.903 | $2.80 | $2.62 | $2.45 | $2.61 |
| Year 2July 1, 2028 | $2.46 | $2.46 | $2.46 | $1.93 | – | $2.37 | – | $3.013 | $2.91 | $2.72 | $2.54 | $2.71 |
| Year 3July 1, 2029 | Expired1 | $2.56 | – | – | – | $2.45 | – | $3.123 | $3.01 | $2.82 | – | $2.85 |
| Year 4July 1, 2030 | Expired1 | $2.66 | – | – | – | $2.55 | – | $3.243 | $3.13 | $2.93 | – | $2.96 |
| Year 5July 1, 2031 | Expired1 | $2.77 | – | – | – | $2.64 | – | $3.363 | $3.24 | $3.04 | – | $3.07 |
| 5-yr averageafter 3 months free | n/a | $2.56 | – | – | – | $2.34 | – | $2.98 | $2.88 | $2.69 | – | $2.72 |
| Lease structureNNN expense $/RSF/mo | NNN | NNN · $0.60 current estimate | IG | NNN | IG | NNN | NNN | NNN | NNN | |||
- The current Suite B lease expires June 30, 2029. Suite B increases 4% each April, so a mid-year step occurs within each lease year.
- Effective rate divides Suites A and B base rent by the full 19,700 RSF; Suite A is billed on 4,250 RSF through June 30, 2029. Subject NNN is the proposal's current estimate of $0.60/RSF/mo.
- 17800 Mitchell North: listed at $2.90 NNN. Also marketed at $3.25 NNN with a $1.10 promo for months 1–4.
- Options 1 and 3 are listed industrial gross (IG), not NNN.
- 1601 E Saint Andrew Pl is a sublease through October 2029, so it is shown for Years 1–2 only. Years 3–5 and the 5-year averages use Options 2, 4, 5 and 6.
Five-year view
Proposed Suite A rate against the market options, $/RSF/month NNN
Proposed Suite A rate (4% increases)Proposed effective, Suites A + B (Years 1–2)Market options (3.75% increases)Completed deals, signed average $2.36
Effective rate is shown for Years 1–2. Market options shown: 2 and 4–7; Option 7 is a sublease through October 2029.
Proposed expansion
Base rent schedule, July 2027 through June 2032
| Lease year | Suite A rate$/RSF/mo from July 1 | Suite A billed RSF | Suite A base rent | Suite B rateat July 1 | Suite B base rentcurrent lease | Total base rent |
|---|---|---|---|---|---|---|
| Year 1Jul 2027–Jun 2028 | $2.37 | 4,250 | $120,673 | $2.37 | $321,190 | $441,864 |
| Year 2Jul 2028–Jun 2029 | $2.46 | 4,250 | $125,500 | $2.46 | $334,038 | $459,538 |
| Year 3Jul 2029–Jun 2030 | $2.56 | 8,500 | $261,041 | – | – | – |
| Year 4Jul 2030–Jun 2031 | $2.66 | 8,500 | $271,482 | – | – | – |
| Year 5Jul 2031–Jun 2032 | $2.77 | 8,500 | $282,342 | – | – | – |
| Total | $1,061,039 | $655,228 | – |
Proposal terms
- Premises
- 19,700 RSF: Suite A 8,500 + Suite B 11,200
- Term
- Suite A 60 months, Jul 1, 2027–Jun 30, 2032; Suite B extended to Jun 30, 2032
- Base rent
- Suite A starts at Suite B's rate on Jul 1, 2027; 4% annual increases
- Phase-in
- Suite A billed on 4,250 RSF through Jun 30, 2029
- Operating exp.
- Current estimate ~$0.60/RSF/mo; controllable expenses capped at 6% annually
- Improvements
- Landlord turnkey TI, combine suites; $60,000 FF&E allowance
- Option
- One 36-month renewal at the lesser of fair market rent or final rent + 4%
Current lease · Suite B
- Premises
- 11,200 RSF flex, 17871 Mitchell North, Suite B
- Term
- Apr 1, 2021–Jun 30, 2029 (99 months)
- Base rent
- $20,944/mo at start, 4% annual increases each April, NNN
- Today
- $25,482/mo ($2.28/RSF); $26,501 from Apr 2027
- Final rate
- $28,663/mo ($2.56/RSF), Apr–Jun 2029
- Option
- One 36-month extension (Exhibit E)
Available for lease now
Seven relocation alternatives from the current survey
| # | Property | Submarket | Suite | Available RSF | Built | Available | Structure | Asking$/RSF/mo | 5-yr effectiveafter 3 mo free | Listing notes |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | 17991 CowanCowan Business Center | Irvine Business Complex | Suites 110-140 | 23,500 | 1984 | 1/2027 | Industrial Gross | – | – | |
| 2 | 2950 Airway AveAirway Business Park | Costa Mesa | Entire bldg | 30,000 | 1996 | 2/2027 | Triple Net | $2.28 | $2.34 | |
| 3 | 1432 Edinger Ave | Tustin | E | 10,000–15,500 | 1986 | 45 days | Industrial Gross | – | – | |
| 4 | 17800 Mitchell NorthMitchell Business Park | Irvine Business Complex | A + B | 16,000 | 1983 | 45 days | Triple Net | $2.90 | $2.98 | Also marketed at $3.25 NNN/mo with a $1.10 NNN promo for months 1–4 |
| 5 | 2182 Dupont DrDupont Plaza | Irvine Business Complex | B + C | 11,500 | 1987 | 45 days | Triple Net | $2.80 | $2.88 | |
| 6 | 3100 Red Hill AveRed Hill Industrial Center | Costa Mesa | 210 | 13,000 | 1985 | Now | Triple Net | $2.62 | $2.69 | Can combine with Suite 220 for 19,000 SF |
| 7 | 1601 E Saint Andrew PlSaint Andrew Business Center | Santa Ana | 1601 (sublease) | 22,000 | 1976 | 45 days | Triple Net | $2.45 | – | Sublease term through Oct 2029 |
- Only Option 1 (23,500 RSF) and Option 2 (30,000 RSF) offer 19,700 RSF or more contiguous. Option 6 reaches 19,000 RSF if combined with Suite 220.
- Option 7 is a sublease available through October 2029, 32 months short of June 2032.
- Annual asking rates converted to monthly ($34.80/yr = $2.90/mo).
Section 2
Completed deals
Seven flex, R&D and light industrial leases signed November 2025 through September 2026
Completed deals · comps
Recent leases, 11,500–21,000 RSF, Irvine, Costa Mesa and Santa Ana
| # | Address | Submarket | Leased RSF | % of bldg | Signed | Commenced | Rate$/RSF/mo | Type | Class | Built |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | 2552 White RdIrvine 92614 | Irvine Business Complex | 12,500 | 62% | Sep 8, 2026 | Dec 7, 2026 | $2.60 asking | Light Distribution | B | 1989 |
| 2 | 17182 Armstrong AveIrvine 92614 | Irvine Business Complex | 12,500 | 55% | Jul 28, 2026 | Oct 26, 2026 | – | Light Manufacturing | C | 1982 |
| 3 | 3303 Harbor BlvdCosta Mesa 92626 | Costa Mesa | 15,500 | 18% | Mar 12, 2026 | Jun 16, 2026 | $2.26 NNN starting | Light Distribution | B | 1998 |
| 4 | 1851 Kettering St, Bldg BIrvine 92614 | Irvine Business Complex | 21,000 | 72% | Mar 3, 2026 | Jun 1, 2026 | $2.46 NNN starting | R&D | B | 1990 |
| 5 | 2021 E Dyer Rd (Dyer Business Center)Santa Ana 92705 | Santa Ana | 13,500 | 39% | Jan 14, 2026 | Mar 1, 2026 | $2.24 NNN asking | Light Manufacturing | C | 1977 |
| 6 | 17522 Von Karman AveIrvine 92614 | Irvine Business Complex | 11,500 | 48% | Nov 19, 2025 | Jan 5, 2026 | – | R&D | C | 1988 |
| 7 | 15 Studebaker (Spectrum Technology Center)Irvine 92618 | Irvine Spectrum | 13,000 | 9% | Nov 6, 2025 | Dec 17, 2025 | – | R&D | A | 2025 |
| Averagerate: signed starting rents, comps 3 and 4 | 14,214 | $2.36 |
- Comps 3 and 4 report signed NNN starting rents of $2.26 and $2.46, an average of $2.36. Comps 1 and 5 report asking rents of $2.60 and $2.24. Comps 2, 6 and 7 report no rate.
- The proposal's Year 1 rate of $2.37 sits between the two signed starting rents.
- All seven are full build-out, direct new leases. Comp 7 is a 2025 Class A R&D building in the Irvine Spectrum.
Prepared for Apex Photonics
Mark Reynolds
Principal, Harbor Commercial
200 Spectrum Center Dr, Suite 900
Irvine, CA 92618
949.555.0137
mark@harborcommercial.com
DRE# 00000000
Information contained herein has been obtained from sources deemed reliable. While we believe this information to be true, Harbor Commercial makes no guarantee, warranties or representations as to the completeness or accuracy thereof. All information submitted is subject to errors and/or omissions. Sample deliverable: names, properties and figures are illustrative.