Commercial Space Vacancy Rate Drops

As local businesses continue to expand and new ones move into the area, the space available for office, retail and industrial enterprises in Ventura County declined slightly during the fourth quarter of 1996, according to a report released Thursday by CB Commercial Real Estate Group.

It’s the fifth consecutive quarterly drop in the vacancy rate for office, retail and industrial real estate and is yet another sign that the area’s economy is on a path of moderate but steady growth.

Countywide office space vacancies dropped to 13.2% at the end of the fourth quarter, a full percentage point decline from the end of the third quarter. Large blocks of contiguous office space are growing scarce, particularly in eastern portions of the county, analysts said.

Most available office space is being snapped up by expanding local businesses but inquiries by companies from outside the county are increasing. The trend is expected to continue in 1997, possibly at a faster rate than in 1996, analysts said.

Industrial activity increased throughout 1996, sending the amount of available industrial space down to 8.9% at the end of the fourth quarter from 9.3% the previous quarter, the report showed. Most of the new industrial activity was in the western portion of the county. In the Conejo and Simi valleys, a large amount of available high-tech and research and development space pushed the vacancy rates up slightly, particularly in Newbury Park.

Meanwhile, the county benefited from steady construction of new retail space, most of which was occupied during 1996. In the last quarter, the most significant retail centers to open countywide included the Camarillo Town Center and the Promenade at Westlake in Thousand Oaks.

During the same period, vacancy rates for retail space declined countywide from 6.3% at the end of the third quarter to 6.1% at the end of the year.

Analysts expect that Ventura County will remain a competitive retail destination in 1997.