VENTURA: Few Projects, Low Vacancies Might Push Rental Rates Higher

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It’s a landlord’s market in Ventura County.


Vacancies held steady at a low 7.7 percent at the end of the year, forcing tenants to snap up whatever large blocks of space became available. Shrinking availability also allowed landlords to command asking rates of $2.25 to $2.50 per square foot.


“I haven’t seen vacancy rates consistently this low in 17 years,” said market veteran Grant Harris, senior vice president of Lee & Associates.


Several new office projects are at various stages of development around the county, which should eventually spell relief for tenants who need large space, want to be closer to a solid workforce or are price-sensitive.


However, not many projects are expected to be completed over the next six months. Combined with strong economic growth, that means tenants may want to move fast.


“It looks as though rental rates will climb sharply. This could be an opportune time for tenants to lock in long-term leases,” said John DeGrinis, senior vice president for Colliers International, who added that the region remains a lower cost alternative within the larger Southern California market.


“Overall, rental rates in Ventura County are still a bargain compared to adjacent markets such as Los Angeles and Orange County,” he said.



Margot Carmichael Lester


MAIN EVENTS

Zinc Matrix Products took 43,000 square feet of R & D; space at 4765 Calle Queztal in Camarillo. The seven-year lease is valued at $2.2 million. The deal brought the city’s vacancy rate down to 7.3 percent.


The Sarla Gupta Trust purchased the 65,000-square-foot R & D; building at 809 Calle Plano in Camarillo for $7.3 million from Integrated Capital.


Ed & Ted’s Excellent Lighting relocated to 1401 Maulhardt Ave in Oxnard, expanding to 41,000 square feet from 11,000 square, in a $1.3-million, five-year lease.


Executive Life Suites signed a five-year lease for 11,300 square feet at 1000 Town Center Drive in Oxnard. Terms were not reported.


CoolPak took 127,000 square feet at 2601 Camino Del Sol in Oxnard in a five-year $3.5-million lease. These transactions pushed the city’s vacancy to single digits at 9.2 percent.


The Ventura County Rainbow Alliance took 10,500 square feet at the Ventura Commerce Center, 4567 Telephone Road, in Ventura in a seven-year lease. Financial terms were not reported. Ventura has the highest vacancy rate in the county at 12.4 percent.


ARI-Rancho Conejo I & II LLC acquired Rancho Conejo Business Center, a two-building, 159,100-square foot office/flex business park at 1525-1535 Rancho Conejo Blvd., in Thousand Oaks. FPA Rancho Conejo Associates LP sold the property for $31.2 million. Thousand Oaks has the lowest vacancy in the county at 7.1 percent.

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