The exodus from office buildings that started in late 2007 accelerated during the third quarter as the anemic business climate took its toll on the real estate rental industry, according to the Cushman & Wakefield real estate brokerage.
"These vacancies are a direct reflection on unemployment," said Joe Vargas, an executive vice president at Cushman & Wakefield. "Companies continue to reduce their workforce, or they are not hiring."
Snark translation: Thank you for choosing Cushman & Wakefield. We know you have many choices when analyzing the Southern California CRE market and we are dedicated to making your meal here with us a pleasant one. One note; the entire company is a hopium smoking section for your convienence. On the menu this morning ; one large cup of denial, buttered statistics, a steaming bowl of hypocrisy. For the main course; only the finest hand packed sausage made from the same secret ingredient entrails that go into our projections. For dessert; dollops of a most distracting concoction, blame of unemployment, is piled on top of the truth of overbuilding so that the resulting melange simply transcends understanding. We call it hoocoodanode parfait. And for your entertainment your server will read from his latest book.
IMO SoCal CRE suffers more from shadow overcapacity than does RRE. There were a lot of perfect storm trends that came together to produce this historic imbalance. Those general trends can be broken down into several categories. Economic, demographic, geographic, sociological, technological and competitive. We can spend hours on any but just an example of competitive. The Oxnard Target store is moving. A whole 1/2 mile across the freeway, further away from its cachement locus. Why? Because if they don't a competitor might take that new space and predate their customers. Now you've got a surplus full size Target store close to the core of a large population center.
Ventura Star story:
The closure of Oxnard’s existing Target will increase the barren surroundings of the area, which has seen its share of shuttered businesses: 24 Hour Fitness next door to Target; the abandoned Wagon Wheel area across Oxnard Boulevard; and a nearby boarded-up building that formerly housed Levitz.
Curtis Cannon, the city’s community development director, said he’s not concerned.
The green arrow is the new Target location: