PROJECT TO BOOST SIMI INDUSTRIAL SPACE.Byline: Jesse Hiestand Daily News Staff Writer More than 300,000 square feet of industrial space will be built near Tapo Canyon Road and the Ronald Reagan Freeway as part of Southern California's largest speculative venture of its kind this decade, officials said Monday. A partnership between Wohl Property Group and Prudential Real Estate Investors A real estate investor is someone who actively or passively invests in real estate. An active investor may buy a property, make repairs and/or improvements to the property, and sell it later for a profit. plans to break ground this fall on two industrial buildings - 184,635 and 132,850 square feet - in a project recently renamed Tapo Canyon Business Center. The project is part of a 1.2 million-square-foot package - believed to be the largest speculative industrial real estate venture in 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, in the '90s, said Darla Longo, a senior vice president with CB Commercial, a major real estate marketing company. The other two projects are in Santa Fe Springs Santa Fe Springs, city (1990 pop. 15,520), Los Angeles co., SW Calif., inc. 1957. The city lies in an oil and natural gas region and has diversified manufacturing. and Mira Loma. ``Once you start building on spec, it indicates the market is strong,'' Longo said. ``It's a tight market (in 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. ). Demand is increasing and supply has diminished substantially.'' Indeed, a recent market survey by CB Commercial found a declining supply of available industrial space in Ventura County. This trend, coupled with a resulting increase in rental rates for leased properties, likely would usher in Verb 1. usher in - be a precursor of; "The fall of the Berlin Wall ushered in the post-Cold War period" inaugurate, introduce commence, lead off, start, begin - set in motion, cause to start; "The U.S. a new round of speculative building to meet market demand, the report concluded. Speculative development means that construction will go forward even though the actual buildings are not leased yet. Given the state of the market, Longo said, CB Commercial probably will have tenants signed up before construction is complete. Either way, Prudential Real Estate Investors has agreed in advance to buy the buildings once the Wohl Property Group finishes construction and obtains a certificate of occupancy A document issued by a local building or Zoning authority to the owner of premises attesting that the premises have been built and maintained according to the provisions of building or zoning ordinances, such as those that govern the number of fire exits or the safety of , she said. This is not seen as a risky move because the industrial vacancy rate in Simi Valley is now at the ``very low'' rate of 6 percent, less than half of what it was when the market bottomed out a few years ago, Longo said. The new Simi Valley project probably will house one tenant in each of the buildings, both of which will be built on 55 acres in an industrial park formerly known as Heritage Oaks and Peppertree South Business Center. That site already is home to Guardian Medical and Standard Abrasives, which together occupy a total of 200,000 square feet. An upturn in the industrial real estate market is being seen not only in Simi Valley but Valencia and Chatsworth, Longo said. 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. is lagging Lagging Strategy used by a firm to stall payments, normally in response to exchange rate projections. behind the trend, she said. If development of the Simi Valley buildings goes smoothly, more of the same will follow, she said. ``We'd like to keep building if we're successful,'' she said. ``There's just very little product out there and demand is up.'' |
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