WESTLAKE VILLAGE, CA - Declaring that adequate housing supply is crucial to business growth and a healthy commercial real estate sector in Conejo Valley, the top official of Westcord Commercial Real Estate Services said available office space is rapidly disappearing in the region and some is even being converted to residential use.
Speaking this month (Feb.) at the Thousand Oaks-Westlake Village
Regional Economic Forecast at the Westlake Inn, Rick Principe, chairman/CEO of Westlake Village, CA-based Westcord, said that while the outlook for commercial real estate is positive, providing housing for employees of small to modestly-sized businesses, in particular, is the key to sustaining economic vitality in the region.
"Office buildings are being bought and converted to condominiums, a reflection of the hot housing market. The problem is this eliminates vital office space. This is reflected in an office vacancy rate of 7.5 percent in Conejo Valley, the lowest in recent memory," said Principe.
Principe added that with very little new construction underway in Conejo Valley, industrial and office projects have been hot acquisition targets, often despite zero and even negative income streams.
"Tenants, meanwhile, are buying their own facilities at a rapid clip to take advantage of appreciation while stabilizing their facility costs," said Principe.
Yet, continued Principe, housing is the central issue. "The supply of housing is a growing problem. Camarillo is getting the housing Conejo Valley isn't building. This creates more traffic in and out of our area where the bulk of the region's jobs are located", said Principe.
While stating that the commercial real estate sector is in a positive cycle in the wake of the strong housing market, Principe said the supply of housing must keep pace.
Mixed use projects in close-in areas of local communities were advanced by Principe as a major solution.
"Mixed use projects provide the overriding advantage of creating housing in concert with retail space where you already have developed land. So no land is lost and sprawl is stemmed. If we're going to develop apartments, wouldn't you rather have them along existing developed thoroughfares?," he asked.
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