Retail real estate in Ventura County posted a strong showing in the third quarter, but the industrial market was flat and office absorption dropped sharply, reflecting corporate anxiety over an uncertain economy.

The countywide retail vacancy rate edged down slightly to 5.0 percent in the third quarter, compared to 5.1 percent in the previous quarter.

Meanwhile, the vacancy rate for industrial property declined from 9.8 percent in the second quarter to 9.7 percent in the third period, but office vacancies edged up to 11.3 percent in the third quarter, compared to 10.5 percent in the second quarter, according to CB Richard Ellis in Ventura.

“People are looking at the economy and taking a much more cautious approach,” said Jerry Pelton, managing director of CB’s Ventura County office. “Landlords are unwilling to take on some of these more marginal dot-coms, and (the more established) companies are being a bit more careful about making new commitments.”

Overall, Ventura County’s retail market enjoyed a robust third quarter, proving once again that e-commerce isn’t going to supplant old-fashioned shopping anytime soon, said Carol Schroeder, a retail associate with CB.

“People still like brick and mortar,” she said. “If anything, they tend to use online shopping as a supplement.”

The biggest deals in the third quarter were the sales of two Ventura strip malls. Poinsettia Plaza, which is on the southwest corner of Telephone Road and Main Street, sold for $22.9 million. (Barnes & Noble and Kinko’s anchor the center.)

Telephone Road Plaza, which is on southeast side of the same intersection, sold for $15.9 million. That mall is anchored by a Mervyn’s and Burlington Coat Factory.

Oxnard, meanwhile, saw several grand openings, including the six-screen Channel Islands Cinemas, a 99 Cents Only store, and a Guitar Center, while Newbury Park saw the opening of a new Vons grocery store.

Macy’s announced plans for a remodeling and expansion of its store at Pacific View Mall on East Mills Street in Ventura. That project is estimated to cost at least $16 million. The mall, formerly known as the Buena Ventura Shopping Center, has undergone a complete renovation, and the Macy’s store is the final piece of the puzzle.

Demolition work, meanwhile, is nearly complete at the Esplanade. Oxnard’s aging shopping center is being torn down to make way for a Home Depot, Cost Plus, Old Navy, Bed Bath & Beyond and a Staples.

“It’s going to bring a lot of large, national tenants that are missing from the mix in the area,” said Schroeder.

Meanwhile, construction is underway on a Baja Fresh restaurant, Payless Shoe store and Starbucks at the Village at Newbury. Building is nearly complete on an Albertson’s supermarket and Long’s drug store at the Newbury Park Place shopping center, and construction is about to get started on a Carl’s Jr., Del Taco and Krispy Kreme doughnut shop at the Rose Crossing in Oxnard.

“There’s a lot of development moving forward,” said Schroeder. “It’s just taking some time.”

Over the past three years, Ventura County has added 1.6 million square feet of retail space to its offerings, yet vacancy rates have been on the decline. During the third quarter of 1998, the retail vacancy rate stood at 7.6 percent, but it has declined steadily since, to 6.9 percent in the third quarter last year, and to 5.2 percent in the latest quarter.

Monthly lease rates for retail properties in the eastern portion of the county range from $1.50 to $3.50 a square foot, depending on the location and property. Rates in the western end of the county, including Ventura, Oxnard and Camarillo, are generally lower, ranging from about $1.25 to $3.25 a square foot.

The office market, on the other hand, fell victim to the nation’s slowing economy and the roller-coaster stock market.

“A lot of companies are in wait-and-see mode. They’re waiting to see what’s going to happen with the economy and the stock market and earnings,” said Michael Slater, a senior vice president at CB who oversees office property.

The anxiety is reflected in office absorption rates in the third quarter. Only 178,000 square feet of space was sold or leased in the third quarter in the Ventura County market. That compares to absorption of 477,000 square feet in the second quarter.

(CB includes Agoura Hills and Calabasas in its Ventura County numbers because it defines the market as encompassing the entire Conejo Valley.)

In the west county, only a couple of significant leases were signed. The state Health Services Department leased 15,000 square feet in the First American Title Building in Oxnard, and the state Department of Industrial Relations leased 15,000 square feet at the Pacific West Corporate Center in Oxnard.

In other areas, Spirent Communications, a networking firm, leased 82,000 square feet in Calabasas; Cheesecake Factory leased an additional 30,000 square feet adjacent to its headquarters in Calabasas; and Thorson & Associates leased 19,000 square feet in Westlake Village.

While the office market was slow in the third quarter, the outlook is far from bleak, said Slater.

CB has identified 45 firms, most of them in the high-tech sector, actively looking for space along the Ventura (101) Freeway corridor. Most need at least 10,000 square feet and some much more. “There seems to be a ton of interest,” said Slater.

Then again, there better be, given that 614,000 square feet of office space is under construction in the Conejo Valley alone.

Among the projects in the works are Calabasas Park Centre, with 110,000 square feet, and Canyon Vista Office Park, with 92,000 square feet, both in Calabasas.

“If the market continues to go down, we’re going to have problems because there’s a lot of space coming on line,” said Slater.

In the industrial arena, on the other hand, the absorption rate actually improved a bit. About 592,000 square feet of space was sold or leased in the third quarter, compared to 518,500 square feet in the previous quarter.

Excalibur Window Fashions, a window coverings manufacturer, leased two buildings with a combined 68,000 square feet of space in Oxnard. Nesi Apparel leased 43,000 square feet in that same city. Over in Ventura, Fugro West Inc. leased 28,000 square feet, and Swiss Production leased 24,000 square feet.

Farry said the fourth quarter should be stronger because a number of significant deals are expected to be inked. “We’re going to see a lot of buildings being leased or sold, especially in the Oxnard plain,” he said.

Many out-of-the-area companies have set in place plans to move to less-congested Ventura County. But again, executives are waiting to see which way the economy bounces before pulling the trigger.

“There’s a lot of momentum in place for San Fernando Valley companies to move,” said Farry.