COMMERCIAL REAL ESTATE ON UPSWING : VACANCY RATES FELL IN 3RD QUARTER.Byline: Daily News Staff Writer The largest speculative office building in six years is in the works in the Conejo Valley The Conejo Valley is a region spanning both Southeastern Ventura County and Northwest Los Angeles County in Southern California, United States. It was discovered in 1542 by Spanish explorer Juan Rodriguez Cabrillo, and eventually became part of the Rancho El Conejo land grant by . Simi Valley Simi Valley (sē`mē, sĭm`ē), city (1990 pop. 100,217), Ventura co., SW Calif. in an oil, fruit, and farm region; laid out 1887, inc. 1969. and Moorpark are benefiting from strong demand among research and development firms for industrial space, with much of the influx from the west San Fernando Valley San Fernando Valley Valley, southern California, U.S. Northwest of central Los Angeles, the valley is bounded by the San Gabriel, Santa Susana, and Santa Monica mountains and the Simi Hills. . And on the retail front, shopping center shopping center, a concentration of retail, service, and entertainment enterprises designed to serve the surrounding region. The modern shopping center differs from its antecedents—bazaars and marketplaces—in that the shops are usually amalgamated into development is strong in the east county, while mom-and-pop businesses are driving a retail occupancy resurgence re·sur·gence n. 1. A continuing after interruption; a renewal. 2. A restoration to use, acceptance, activity, or vigor; a revival. in parts of Ventura and Oxnard. ``We can finally be positive about the economy,'' said Jerry Pelton, managing officer for the Ventura office of CB Commercial, which released third-quarter commercial vacancy VACANCY. A place which is empty. The term is principally applied to cases where an office is not filled. 2. By the constitution of the United States, the president has the power to fill up vacancies that may happen during the recess of the senate. rates Thursday. ``This quarter definitely marks the end of Ventura County's real estate depression, and we mean depression.'' With ample available commercial space, Pelton said the county was in position to benefit from business expansion within the county and lure lure the skin-covered object which runs on a monorail on a Greyhound racing track and which the dogs are schooled to chase. The lure must be kept 30 to 40 ft ahead of the leading dog so that the field is stretched out. business and industry into the area with competitive lease rates. Comparing the three-month period of July, August and September for 1995 and 1996, retail vacancy rates dropped from 7.7 percent to 6.3 percent, office vacancy rates dropped from 15.5 percent to 14.2 percent, and industrial vacancy rates dropped from 10 percent to 9.3 percent. Office vacancy rates primarily have been driven down by expansion of service businesses into the suburban Conejo Valley, with existing space going for higher lease rates, given the continued lack of new construction. ``We see the elements in place leading to a long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. improvement in the office market,'' said Chuck Engel, office properties manager for CB Commercial. ``The tight office market in the Conejo Valley is also attracting investors.'' The west county will benefit from the improving market as demand for office space drives lease rates higher, prompting some tenants to seek less expensive space from Camarillo Camarillo (kă'mərē`yō), city (1990 pop. 52,303), Ventura co., S Calif.; inc. 1964. It is the center of a fertile farm area where citrus fruits and flowers are grown. to Ventura, Engel said. Suburban office space also is becoming a more attractive investment again, with three Conejo Valley buildings, totaling 105,000 square feet, sold to real estate investment groups during the third quarter, Engel said. Retail vacancy rates in the east county have remained low the past year and the surge in construction of shopping centers in Thousand Oaks Thousand Oaks, residential city (1990 pop. 104,352), Ventura co., S Calif., in a farm area; inc. 1964. Avocados, citrus, vegetables, strawberries, and nursery products are grown. and Camarillo has not affected that. ``With these developments, it's all been driven by major retailers,'' said Lawrence Tanji, retail properties manager for CB Commercial. The strength of mom and pop Mom and Pop An adjective denoting a small-scale and family-like atmosphere, often used to describe these types of businesses and investors. Notes: A mom-and-pop business is typically a small family-run business. businesses, such as coffee and sandwich shops and book stores, is a signal of consumer confidence. Those businesses are growing particularly in the west county, where retail vacancy rates remain higher than the east county, Tanji said. ``The mom-and-pop market is coming back and filling in those vacancies,'' he said. The greatest third-quarter improvement has been in the industrial market. Expanding firms have been moving into vacant buildings and there are initial signs of new construction, though mostly in the Oxnard area, said Douglas Shaw, industrial properties manager for CB Commercial. ``So we've got a great market internally,'' Shaw said. ``In fact, in some instances we're getting three and four offers on buildings. We haven't seen that in 10 years.'' Shaw said a notable trend is the movement of research and development into the east county, with Simi Valley and Moorpark often offering newer and more attractive space than the Conejo Valley. VACANCY RATES Here are commercial real estate vacancy rates for Ventura County in the third quarter of 1996, compared with the like quarter a year ago. Segment 3Q '95 3Q '96 Retail 7.7% 6.3% Office 15.5% 14.2% Industrial 10.0%9.3% SOURCE: CB Commercial Real Estate Group Inc. CAPTION(S): Chart Chart: (Conejo edition only) VACANCY RATES (See text) |
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