ECONOMY DRIVES REAL ESTATE MARKET.

Byline: David Greenberg Staff Writer

VENTURA - Backed by the thriving industrial sector, Ventura County's commercial real estate market is showing no signs of deviating from the prosperous path set during the first quarter of 2000, experts said Friday.

Many east county companies were expanding - mostly within their same cities - and two other companies relocated from Chatsworth to Simi Valley, partly in search of a better quality of life for their employees.

``The economy is solid and the businesses located in Conejo are experiencing good solid growth,'' said Jerry Pelton, managing director of CB Richard Ellis, a Ventura brokerage firm. ``That's what's driving the market. Overall, we'll stay at an equilibrium where the supply meets the demand.''

Economic conditions for the industrial, office and retail sectors that make up the overall market were released at the firm's quarterly review and forecast meeting.

Brokers were bullish on the industrial sector, generally regarded as the barometer for real estate holdings because it determines job growth and the demand for retail space, followed by the need for more office space.

The vacancy rate for industrial space countywide increased from 9.3 percent in the last quarter of 1999 to 9.4 percent in the first three months of this year.

James Meaney, a CB vice president, attributed the stability to the fact that businesses are buying and leasing space almost as fast as it becomes available. ``Ventura County is still very desirable,'' he said. ``Most of the activity is local companies expanding within their cities.''

Companies that expanded during the first quarter include:

--Harris Dracon Corp., a Camarillo electronics equipment maker, took an additional 25,000 square feet.

--Pinkdot.com relocated its grocery delivery business to another Camarillo site, containing 31,000 square feet.

--Biosource, which makes biomedical tools, relocated in Camarillo to a 60,000-square-foot facility.

--Corlund Electronics moved from Newbury Park to a 60,000-square-foot facility in Camarillo.

--DW Drums of Oxnard moved into a nearby 57,000-square-foot building.

--Diversified Panel relocated to a 57,000-square-foot Oxnard facility.

--Artistica Metal expanded by 73,000 square feet for its iron-based furniture enterprise in Oxnard.

Additionally, the Aware Products cosmetics manufacturer and Fairchild Fasteners, which makes small parts for airplanes, left Chatsworth for 122,484- and 88,003-square-foot facilities in Simi Valley.

``(Moving west) seems to be the trend for larger deals,'' said Bob Kahn, a CB vice president. ``It's a quality of life issue more than anything else.''

The healthy industrial sector coincides with a countywide drop from in retail space vacancies from 5.8 percent to 4.9 percent - including 5.5 percent to 4.9 percent in the east county - during the first quarter.

Lawrence Tanji, a CB vice president, said retailers in the Conejo Valley are paying a lot for the privilege of operating in areas with little competition.

``The Conejo Valley has always been undersupplied as far as retail,'' said Tanji. ``The (residents) are there with the disposable income. But there just aren't enough locations that are zoned commercial. There's always a demand for space in Thousand Oaks area due to the lack of available space.''

Recent openings and signed deals include: a 24 Hour Fitness and a Coffee Bean & Tea Leaf in Thousand Oaks; Pier One, Aaron Bros. and Western Federal Credit Union in Camarillo; a 9-acre development site in Newbury Park sold to developer Bob Selleck.