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The completion of the office building Ventana Real II.
Commercial development company Newport National Corporation has announced the completion of Ventana Real II. The office building is one of only 16 new office buildings constructed and completed this year in San Diego, California. Observers note that Ventana Real II could be considered as the only huge office building constructed and completed in 2010. This is because nine of those 16 buildings are small while six were built to house certain owners or tenants.
Ventana Real II is located in Carlsbad. It has up to 79, 000 square feet of newly built office space. Newport National Corporation believes that the construction has been properly timed, despite skepticism from several market analysts. According to critics, the new building was built at a time when there is already a glut in commercial or office spaces in Carlsbad. However,[link widoczny dla zalogowanych], the company thinks otherwise.
According to the firm, it is true that there is a wide array of choices for tenants searching for office spaces in the area. However, it asserts that there are limited options if a tenant looks for newly constructed,[link widoczny dla zalogowanych], state-of-the-art, and first-quality office spaces at the heart of sustainable development. Newport National Corporation is confident that it would win that segment of discerning tenancy market.
Market analysts note that the market Newport National Corporation has entered into is currently awash with numerous office spaces. Construction in the entire San Diego burst from 1998 to 2006. The market reached a $670 million peak in 2006. It should also be highlighted that at the end of the eight-year property boom in the area, most of new office constructions were situated in Carlsbad. After 2007, it is clear that property boom faded.
Current trends lead to a projected $87 million of commercial construction expenses in 2010. The figure is up to 87% lower compared to the peak. Many companies continue to lose or trim businesses. Some even allow leases to expire or move to smaller office spaces to save on costs.
According to industry data, the office vacancy rate in North San Diego County was at 22%,[link widoczny dla zalogowanych], from July to September or the third quarter. The monthly asking rent average dropped to $2. 24 for every square foot.
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However, Newport National Corporation remains optimistic. It boasts that it decided to proceed to completing construction of Ventana Real II, because construction costs were very low in the period. The company added that imminent restrictions in water supplies in Carlsbad would make it harder,[link widoczny dla zalogowanych], if not impossible, to apply for water meters later on. It emphasized that it seized opportunities that came despite the crisis.
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