Conejo Valley Has Rare Surplus of Offices

Three months ago, finding a large amount of office space in the east county was next to impossible. Not anymore, according to a real estate analysis released Thursday.

But a surplus of empty offices throughout the Conejo Valley--more than at any time in the last two years--is not a harbinger of an economic downturn, say analysts with CB Commercial Real Estate Group.

Instead, much of the available space was caused by the recent sale of two big office buildings in the area, said Michael Slater, a vice president at CB Commercial.

Local economic experts agree with that assessment, calling the current space availability a “fluke” or a “blip” in the market that probably will lead to a surge in office rentals.

“I see nothing but positives coming out of this,” said Mark Schniepp, who as head of the UC Santa Barbara Economic Project tracks Ventura County’s economy. “Now, it opens up some needed space where there’s been a dearth of space available.”

In the eastern portion of the county, the office vacancy rate was 15.2% in the fourth quarter of 1997, nearly double the rate of the previous three-month period. That’s the highest it has been since the third quarter of 1995, Slater said.

Last week, the 166,000-square-foot Exxon building on Hillcrest Drive in Thousand Oaks was purchased by Lincoln Property of Orange County for a reported $15 million, Slater said, adding that the new owners plan a major renovation.

In addition, two buildings owned by Amgen in Westlake Village--totaling 110,000 square feet--were sold to the Johnston Group of Calabasas for about $12 million. The new owners plan to turn much of the space into leased offices, Slater said.

In the western end of the county, the amount of available office space decreased slightly for the fourth consecutive quarter. And CB Commercial said the 18.3% vacancy rate probably will continue to decline while the economy thrives because no new major office projects are being planned.

“There’s no reason to build office space [in west county]; we have plenty of it,” Slater said.

However, CB Commercial analysts predict a rise in the amount of retail space opening up in west county. For example, Pacific Theaters is considering leveling its 101 Drive-In theater at Telephone Road and the Ventura Freeway, which houses a weekend swap meet, and turning it into a center of outlet discount stores, said Jerry Pelton, CB Commercial’s managing officer. Pacific Theaters has made no final decisions about the site, he said.

Other retail projects, according to the report, that should be developed in the next few years include:

* Sixty acres next to the Edwards Cinemas near the Camarillo Premium Outlets;

* A 250,000-square-foot development in Camarillo on Ventura Boulevard;

* Another 250,000-square-foot project at Montalvo Hill in Ventura at Victoria Avenue and Avocet Drive;

* A third 250,000-square-foot development, this one at Highway 126 and Wells Road in Santa Paula.