Limited Development Keeps Vacancies Low, for Now.SLOWING economies both here and abroad created a downward spiral in Ventura County's commercial real estate market during the second quarter that some brokers fear could last at least a year. The countywide coun·ty·wide adv. & adj. Throughout a whole county: found at locations countywide; a countywide search. Adj. 1. rate of industrial space that is vacant or will be within 30 days fell to 6.4 percent in the second quarter, from 9.8 percent in the year-ago quarter. That reflects the decision by developers and lenders to limit new construction in order to prevent the major problems that resulted from massive over-development and financial losses in the early 1990s. "The economy is dropping," said Douglas Shaw, vice president of industrial leasing at CB Richard Ellis CB Richard Ellis Group, Inc. NYSE: CBG is a multinational real estate corporation currently based in Los Angeles, California, U.S.A.. On December 20, 2006, the corporation, also known as CBRE, completed acquisition of Trammell Crow Co. in a transaction valued at $2. . "We should see a slowing of the real estate economy in Ventura County and Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, for approximately a year. I would expect that in the third quarter, we're going to see that (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. ) trend reverse itself. We're going to see vacancy rates go higher for Ventura County." Monthly industrial lease rates have held fairly steady since the beginning of the year, however, with space generating 65 to 80 cents per square foot for the east county and 45 to 60 cents in the west county. Analysts attribute the lack of new industrial construction to the slowing economies in Europe and Asia, which traditionally have generated good business for Ventura County high tech firms. "The semiconductor companies and telecommunication telecommunication Communication between parties at a distance from one another. Modern telecommunication systems—capable of transmitting telephone, fax, data, radio, or television signals—can transmit large volumes of information over long distances. companies have been hit hard," said Grant Harris, associate vice president of the industrial market for Colliers Seeley International Inc. "Most of the companies we deal with now are international. The Europe and Asian slowdowns certainly did not help." Still, brokers did not end the most recent quarter without their share of deals. Chief among them was the CB Richard Ellis-brokered sale of four buildings totaling 110,000 square feet at 1905 Lirio Ave. in Ventura last month. E.J. Harrison & Sons Inc., a trash hauling company, bought two of the buildings totaling 63,000 square feet on three acres for $1.2 million, while JDML JDML Job Description Markup Language (XML) JDML Jack Davenport Mailing List JDML Justice for the Dubious Members League Inc.'s Standard Industries, a metals recycling recycling, the process of recovering and reusing waste products—from household use, manufacturing, agriculture, and business—and thereby reducing their burden on the environment. firm, bought the other two buildings totaling 47,000 square feet on eight acres for $2.4 million. Vitesse Semiconductors Corp. purchased a 50,242-square-foot building at 4721 Calle Carga in Camarillo for $4 million on June 1 from Kane Industries Corp. Kane, in turn, moved from that location to a 40,040-square-foot site at 1250 Graves Ave. in Oxnard after signing a 5-year lease for slightly more than $1.1 million. Damn Commercial Real Estate Inc. and CB Richard Ellis brokered those signings. Delphi Business Properties Inc. secured 46,111 square feet of space at 950 Lawrence Drive 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. for Luminet Inc. in a 7-year lease signed in April for $3.4 million. In the office sector, the second quarter closed out with the vacancy rate of 11.3 percent - east county at 10.1 percent and west county at 11 11.8 percent. The figures were up from the second quarter of 2000 when the overall rate was 10.5 percent, with east county at 8.4 percent and west county at 11.6 percent. Yet, 360,000 square feet of space, including 270,000 square feet in east county, is currently under construction and expected to be ready for occupancy by the end of the year. With square footage rates having remained the same from the second quarter 2000 - $1.50 to $2.75 in east county and $1.10 to $1.85 in west county - office developers and landlords appear to be overly optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about seeing a large return on their investment. "One of the problems is that the owners still have a high expectation for rent," said Michael Slater Michael Jonathon Slater (born February 21, 1970, Wagga Wagga, New South Wales) is a former Australian cricketer who played in 74 Tests and 42 ODIs from 1993 to 2001.[1] , CB Richard Ellis' senior vice president of office properties. "It will be interesting to see how these rents hold up when the (new) buildings are completed. There's a real possibility that rents will have to come down." New construction in the east county also will have to compete with the 433,000 square feet of space now being built in the western part of Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. County, just over the Ventura County line. The Jackson, Demarco & Peckinpaugh law firm leased 12,000 square feet at 2815 Townsgate Road in Westlake Village. While on the eastern edge of Ventura County, Cresa Partners reached one of the largest local office deals of the quarter by securing 15,000 square feet of space for an undisclosed sum at 555 Saint Charles Saint Charles. 1 City (1990 pop. 22,501), Kane co., NE Ill., on the Fox River, a suburb of Chicago; inc. 1850. Located in an agricultural area (corn and soybeans), the city has food-processing, aluminum and plastic products, and communications equipment in Thousand Oaks on behalf of American Recovery Services Inc., a commercial credit recovery agency. And Caltrans, represented by Cushman & Wakefield. Inc., leased 7,000 square feet at 1525 Rancho ran·cho n. pl. ran·chos Southwestern U.S. 1. A hut or group of huts for housing ranch workers. 2. A ranch. Conejo Blvd. in Newbury Park in June. Most other agreements in Ventura County were for office spaces less than 10,000, brokers said. Ventura County Major Events: * E.J. Harrison & Sons Inc., a trash hauling company, bought two adjacent Ventura buildings totaling 63,000 square feet in Ventura for $1.2 million. * Vitesse Semiconductors Inc. purchased 50,242 square feet of space in Camarillo for $4 million. * Kane Industries Corp., a house-wares manufacturer, signed a 5-year lease for 40,040 square feet of Oxnard space for about $1.1 million. * Luminet Inc., which makes optical communications Optical communications The transmission of speech, data, video, and other information by means of the visible and the infrared portion of the electromagnetic spectrum. devices, signed a 7-year lease for 46,111 square feet of Thousand Oaks space for about $3.4 million. [Graph omitted] |
|
||||||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion