Office Center Bucks a Trend

Amid the well-documented problems plaguing commercial real estate, at least one project, Rolling Oaks Office Center in Thousand Oaks, provides evidence that success is still possible in this troubled field.

In the late 1980s, Thousand Oaks turned down a plan to develop a high-density residential complex on 25 acres just south of the Ventura Freeway.

The property’s owner, Wilma Pacific Inc., a Westlake Village unit of a large Netherlands developer, got the land rezoned for commercial use and split it into five pieces. Because Wilma is primarily a residential builder, it decided to sell the property.

Even though the recession slowed demand, two of the parcels have been sold and developed thus far, said Tim Grant of CB Commercial Real Estate Group, which represented Wilma in selling the parcels.

The second of the buildings that have been developed so far was completed in January, and it’s already 73% occupied, Grant said.

“I would call that an unusually strong performance in today’s market,” he said. “Of course, the buildings are helped by being new and having views of the Conejo Valley. And, with practically no commercial construction now going on, tenants looking for quality office locations are finding less and less to choose from.”

Last month, a new tenant, Principal Financial Group, signed a five-year lease for 5,700 square feet in the second building. The offices will be used to consolidate work now being done in two other locations by Principal Mutual Life Insurance.

Actually, the key tenant was already lined up by the time work started on the two-story, 30,000-square-foot structure. The owner-developer, R. H. Wade & Associates, a Ventura contractor, signed Profimatics Inc., an international engineering firm, to occupy half the building’s space for 10 years.

Now, Grant said, yet another prospective tenant is considering moving into the building. “To me, this park proves that zoning and economic problems aren’t insurmountable if a property is attractive and well-located.”