Vacancy Rate Rises as Dole Moves Out: Leasing Weak.

VENTURA County office vacancies continued to rise during the fourth quarter, but there were signs of a possible turnaround later this year.

For the fourth quarter, vacancies stood at 10.2 percent, compared with 9.4 percent during the July-September period, according to CB Richard Ellis Inc., and vacancies may keep climbing in early 2000 because of two buildings being vacated by Dole Foods Co. in West lake Village.

But Tom Dwyer, vice president with CB Richard Ellis, said the office market shows signs of progress.

Sales and leasing in the fourth quarter were driven by e-commerce and other Internet firms, including NetZero, which leased another 19,000 square feet of office space in Westlake Village. Meanwhile, Dwyer said Homestore.com is considering an expansion in Thousand Oaks.

Because there often is more parking available at Ventura County office complexes than in the San Fernando Valley, and because the cost of living is substantially lower than in the Silicon Valley, Dwyer says high-tech firms are discovering that Ventura County makes a desirable home base.

Other lease deals include 20,000 square feet taken by the Internal Revenue Service at 751 Daily Drive in Camarillo in an eight-year, $3.5 million deal.

On the investment front, Santa Barbara-based Pacifica Real Estate Group purchased 35,000 square feet in Westlake Village from a private partnership for $5 million. And ABH Oaks LLC bought 12 acres for office and medical development in Westlake Village.

New construction included Silagi Development's Canwood Plaza in Agoura Hills, which broke ground on 50,000 square feet for the first phase.

The industrial market in Ventura County improved during the fourth quarter with the vacancy rate falling to 6.9 percent from 7.2 percent in the third quarter, according to Cushman & Wakefield. Both eastern and western Ventura County saw improvements in the vacancy rate.

Sales included an 82,000-square-foot lot on Pacific Avenue in Oxnard to Davilyn, an electronic and aircraft parts distributor, which is relocating from North Hollywood with plans to build a 35,000-square-foot building. Oxnard-based, auto importer Pacific Vehicle Processors bought 220,000 square feet of parking space at 750 Arcturus Ave. in Oxnard from the city of Oxnard, and Channel Islands Business Center LLC sold 110,000 square feet of land on Ives Avenue in the Channel Business Center in Oxnard to Oxuard Millennium Ltd., which has plans to build three 8,000-squarefoot buildings.

The retail market remained steady -- and tight -- during the fourth quarter, with a 5.8 percent vacancy rate, up from 5.7 percent last quarter. "The market is still strong," said CB Richard Ellis Senior Vice President Austin Bettar.

But Bettar says development has been inhibited by the Save Our Agricultural Resources antigrowth initiative, approved by Ventura County voters m 1999. Bettar says that's one of a series of challenges the retail market faces in 2000.

As new projects come on line, the vacancy rate may increase in the next 24 months, he said. Two such new projects hit the market during the fourth quarter: the Simi Valley Civic Center Plaza and a pair of new department stores -- Sears and Robinson's-May -- at Pacific View Mall in Ventura, the most prominent retail development in western Ventura County.

The tight retail market was reflected in a recent announcement from the new owner of the Esplanade mall in Oxnard that the property, might be razed and replaced, with a number of big-box stores. CB Richard Ellis Vice President Reed Henkelman said the Esplanade, only 40 percent occupied, will probably be torn down by the owner, San Francisco-based M & H Property Management.

New retail projects in the construction stage include the 132,000-square-foot Center Court Plaza at Madera Road and Royal Avenue in Simi Valley, which will feature Albertsons, 24-Hour Fitness and RiteAid.

Ventura County

Major Events:

* Oxnard-based automotive importer Pacific Vehicle Processors purchased 220,000 square feet of industrial space at 750 Arcturus Ave. in Oxnard from the city of Oxnard Community Development Commission.

* Santa Barbara-based Pacifica Real Estate Group purchased 35,000 square feet of office space in Westlake Village from a private partnership for $5 million.

* NetZero leased an additional 19,000 square feet in Westlake Village.

* The Internal Revenue Service signed an eight-year, $3.5 million lease for 20,000 square feet of office space in Camarillo.