Industrial Real Estate Vacancy Rate Drops

Industrial real estate space continued to be filled throughout Ventura County during the first quarter of 1997, while vacancies at retail centers and office complexes inched up slightly, according to a report released Wednesday by CB Commercial Real Estate Inc.

According to the report, the county’s industrial real estate vacancy rate is 8.2%, down from 8.9% in the fourth quarter of 1996.

Oxnard and Camarillo appeared to lead the county in industrial property leases and sales, with a combined total of more than 300,000 square feet leased or sold in the past three months. Bungee Corp. will relocate from Chatsworth to a 64,260-square-foot space at Oxnard’s Pacific Commerce Center, the report noted.

The county’s retail real estate vacancy rate increased slightly, from 6.1% in the last quarter of 1996 to 6.5% in this year’s first quarter, according to the report.

CB Commercial Associate Larry Tanji said that retail vacancies typically rise in the beginning of the year, when struggling stores that have stayed open through the holiday season close.

Tanji said new retail centers in the county, such as the Promenade at Westlake, are enjoying great success and have been able to charge high rents.

Meanwhile, the county’s office market vacancy rate increased from 13.2% in the last quarter of 1996 to 14.9% in the first quarter of 1997.

In eastern Ventura County, the office market vacancy rate stands at 10.2%, while the western county rate is 20.3%.

CB Commercial Senior Associate Cathy Condon said the long-term trend remains toward less vacant office space. The report showed that four years ago, the county’s office vacancy rate stood at 23.5%.

Condon said the demand for office space in white-collar east county areas such as Westlake is especially strong. Some speculative office development is taking place as investors hope to cash in on the demand, she said.

“We haven’t seen that in a long time,” she said.