Vacancies tightening in region

first_imgOffice and industrial vacancy rates continued tightening in last year’s fourth quarter from 2004, with space in the San Fernando Valley hitting critically low levels, a commercial real estate firm said Monday. Rates are now so low in the Valley that both sectors are considered at capacity and could impede the creation of new jobs, officials said. During the final three months of 2005 the industrial vacancy rate was to 2.2 percent in the Greater San Fernando Valley (from Pasadena to the Ventura County line) at year’s end. A year ago it was 2.5 percent, said CB Richard Ellis. For the Greater Los Angeles area, which includes Ventura County, the industrial vacancy rate fell to 1.8 percent from 2.4 percent. For the Greater Los Angeles area the rate fell to 10.6 percent from 12.9 percent at the end of 2004. Rates ranged from a high of 16.5 percent in the South Bay to a low of 5.9 percent in the San Gabriel Valley. The South Bay’s office market is in for a hit this summer when Nissan USA moves its headquarters to Nashville, Tenn. Rick McGeagh, CB Richard Ellis vice president in the South Bay, said in the report that this will bring about 900,000 square feet of space on the market. That could possibly ease tightness in other areas. Bruce Ackerman, president and chief executive officer of the Economic Alliance of the San Fernando Valley, characterized the low office and industrial rates here as unbelievable. And he laments the fact that more industrial buildings are not being developed as old sites are put to other uses. “There is no replacement. Nobody is out there rezoning for industrial,” he said. “We have to be able to put those manufacturing jobs and those R and D jobs in zoning locations that are going to accept them.” Gregory J. Wilcox, (818) 713-3743 [email protected] 160Want local news?Sign up for the Localist and stay informed Something went wrong. Please try again.subscribeCongratulations! You’re all set! AD Quality Auto 360p 720p 1080p Top articles1/5READ MORESanta Anita opens winter meet Saturday with loaded card “We are not replacing buildings … fast enough,” said Nick Gregg, senior vice president at the company who specializes in the Valley area market. “Residential has really been the hot property over the past few years.” Vacancy rates in the region varied from a low of 0.4 percent in Central Los Angeles to a high of 5.6 percent in Ventura County. Gregg said that both the industrial and office markets, both at their lowest levels in years, could benefit from more space. “For our overall economy we need to have more available. It’s healthy for everyone involved. It brings more employment, which helps everyone,” he said. In the office sector the Valley’s vacancy rate was 8.1 percent versus 9.9 percent a year ago. The Tri Cities market – Burbank, Glendale and Pasadena – had a rate of 7.3 percent, down from 9.1 percent a year ago. last_img

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