New Building Keeps Vacancies High
Despite an increased leasing pace that resulted in 376,809 square feet of space being leased during the first quarter of 1986, the overhang of available industrial space in Ventura County grew to 3.7 million square feet--a 29.7-month supply at current market absorption rates.
This is the latest bit of “good news-bad news” from a county where the demand for industrial space is high, but not high enough to absorb the rapidly expanding supply of new space, according to a survey conducted by the Siracusa Co. for Continental Land Title Co., Camarillo.
“The exceptionally strong absorption rate for industrial footage during the first three months of 1986 was the second highest level of performance in the last seven quarters, exceeded only by the 433,062 square feet consumed during the fourth quarter of 1984,” according to Ernest V. Siracusa Jr. of the Westlake Village firm that conducted the market study. Free copies are available from Continental Land Title, 601 Daily Drive, Suite 102, Camarillo 93010.
He said that 2.2 million square feet of high-technology industrial space is now available, although the demand for such space continues to lag the market.
“Weakness in the computer and electronics industries has reduced demand for such footage among large space users, creating an oversupply in the market,” he said. “Multitenant industrial projects continue to perform well throughout Ventura County.”
Because of the large amount of available space, large industrial users can obtain space at bargain rates, Siracusa said. Rental rates for high-tech buildings have dropped to between 36 and 47 cents per square foot triple net for shell only space, while basic multitenant buildings have rents ranging from 28 to 67 cents per square foot, he added.
During the first quarter of this year, Thousand Oaks-Westlake-Newbury Park absorbed the most industrial space (214,572 square feet), followed by Moorpark (53,109 square feet), Simi Valley (51,977 square feet) and Oxnard-Port Hueneme (20,076 square feet).
Simi Valley has the largest amount of industrial space available for lease in the county, a whopping 1,204,974 square feet, followed by Camarillo (849,505 square feet), Thousand Oaks-Westlake-Newbury Park (683,682 square feet), Ventura (419,124 square feet), Moorpark (346,264 square feet) and Oxnard-Port Hueneme (230,456 square feet).
The office space market was dominated by small to moderate size users, with no activity at all in the over-20,000-square foot-category, Siracusa said.
The county has 534,777 square feet of available office space, or a 24.2-month supply at current absorption rates, according to Ron Golden, assistant vice president and corporate marketing director for Continental Land Title.
The Thousand Oaks-Westlake area has the largest amount of office space for lease, 209,427 square feet, he said, followed by Ventura (132,622 square feet), Camarillo (117,530 square feet), Simi Valley (32,658 square feet), Oxnard-Port Hueneme (25,170 square feet), Ojai-Santa Paula-Fillmore (15,192 square feet) and Moorpark (2,178 square feet).
“Unless absorption exceeds new completions, by the end of 1986 we expect to have more for-lease new office space available throughout Ventura County than we do today,” Golden said. “The higher inventories will remain in the eastern part of the county, where new construction has been strongest.”
