Dot-com fever improved the health of the Ventura County office market during the first quarter, driving the vacancy rate down to around 10 percent from 12.4 percent in the fourth quarter of 1999, according to preliminary figures from CB Richard Ellis Inc.
“We had a ton of deals on the plate for companies looking for space. It’s nuts,” said Tom Dwyer, senior associate with CB Richard Ellis. “There are a lot of dot-coms, startups looking for 10,000 to 50,000 square feet, and space is hard to come by.”
Meanwhile, a host of area developments in the pipeline are generating a buzz among potential tenants, including IDS’s major rehabilitation of the former Northrop Grumman airplane manufacturing facility.
Now known as the Conejo Spectrum, the 100-acre master-planned business project in Thousand Oaks consists of three low-rise buildings on 50 acres and another 50 acres set aside for R & D;, industrial and office projects.
Although no new leases have been announced in the buildings to date, Zircom has commissioned a 200,000-square-foot built-to-suit on the undeveloped portion of the land, signing a 10-year pre-lease worth in excess of $40 million.
Meanwhile, developer Moshe Silagi is constructing a pair of structures in Oxnard totaling 100,000 square feet. So far, 15,000 square feet of that space is preleased to the state of California’s Workers’ Compensation Appeals Board.
There’s a marked difference in demand between areas in the eastern and western portions of Ventura County. Camarillo had a tight 6.8 vacancy rate in the first quarter, while Ventura’s vacancy rate stood at 19.4 percent.
“There’s just no large attraction to go to Oxnard and Ventura,” Dwyer said.
Unless, of course, you’re in the industrial market.
About 2 million square feet of new industrial space is scheduled to be completed by the end of the year in Ventura County, much of which will be occupied by newcomers to town and much of it in Oxnard.
The most notable project is the $40 million facility being constructed for Oxnard Seminis Vegetable Seed, which is relocating from Saticoy.
Agoura Hills-based Raypak, a pool heating systems manufacturer, is following suit with a new 250,000-square-foot build-to-suit headquarters on Eastman Avenue in Oxnard, valued at $10 million.
The countywide industrial vacancy rate remained steady in the first quarter, virtually unchanged from the fourth quarter’s 7.7 percent rate, according to Jim Meaney, vice president with CB Richard Ellis.
The quarter’s biggest lease deal was the $4.5 million transaction signed by manufacturer Corlund Electronics for 60,000 square feet in Camarillo, Meaney said. DW Drums came in second with 52,000 square feet leased in the McInnes Rancho Business Park in Oxnard from San Francisco-based RREEF Funds.
There wasn’t much change, however, in the retail market, which saw the arrival of some new projects last 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 county’s average retail vacancy rate stood at around 6 percent, up from 5.8 percent in the fourth quarter, according to Austin Bettar, senior associate at CB Richard Ellis.
“The market is still very good,” Bettar said. “Although nothing closed, we’re still seeing a large number of retailers looking to land once they find a location.”
Home improvement store Lowe’s and sporting goods retailer R.E.I. are among two heavy-hitters eyeing Ventura County properties, Bettar said. To date, Lowe’s has been negotiating on two locations Thousand Oaks and Ventura which could represent a 150,000-square-foot lease once signed, he said.
