WESTLAKE VILLAGE, CA-The Conejo and Ventura Valleys can expect increased retail development, decreased office vacancy rates and industrial sale values to increase in 2014, according to a panel of experts at the Ventura Valley and Conejo Valley economic forecast, presented by CBRE. CBRE SVPs Mark Perry, Paul Farry, David Rush and Tom Dwyer spoke about the highlights of 2013 and gave predictions for 2014 in the retail, office, industrial and capital markets sectors.  

Office properties with the best space and location are the most sought after. By the yearend, the office market can expect decreased vacancy rates with an increase in class-A rents.  At this point, investors should start to reinvest in class-B properties. “ You need to keep pace with class-A rent growth to sustain growth,” said Dwyer at the event, adding that the market also needs to support local businesses as little to no migration is expected.

In the retail market, 2014 will be a year of redevelopment and new development. Target and Total Woman in Westlake Plaza and the Sears redevelopment are among the major projects for 2014. Although these new developments are in the pipeline, Rush says that vacancy rates will likely remain flat while lease rates, land prices and investment will run at a slight increase.

Sale values for industrial properties will increase in 2014, according to Farry, especially for large properties, 100,000 square feet or greater. Due to 2013 trends, he expects that there will be little to no new construction during the year, but a strong possibility for migration into the market. As a result, lease rates will rise dramatically, but land prices will remain flat.

Perry took on the capital markets sector, revealing that the bar bell effect of 2012 stabilized a bit in 2013, and he expects that to continue in 2014 with more stabilized sales. Quality sales over quantity sales will be the theme for the coming year, he said. Fundamentals will continue to improve with class-A buyers moving into the class-B market. Overall, sales per square foot will be sensitive, but it will be a buyers market.