Even with a slowdown in activity, Ventura County's commercial real estate market remains sturdy, with steady demand and rental rates, according to a mid-year report by CB Richard Ellis.

Office

There has been an anticipated uptick in available office property from the completion of new developments and companies vacating large spaces in the second half of last year, such as Countrywide Financial Corp.

Office vacancies, which climbed to 14.4 percent in the second quarter, are expected to hit 17 or 18 percent this year, primarily because of new construction coming online, said Tom Dwyer, senior vice president of office properties. In comparison, office vacancies totaled 12.1 percent for the first quarter and 10.6 percent for the second quarter last year.

Supply is expected to outpace demand this year and slow new office construction as developers wait for new space to be absorbed, according to the report.

Despite increased inventory, it's difficult to find 3,000 square feet of office space or less, Dwyer said. There's growing demand for such space among people who have received a "golden handshake," or early retirement incentives, from large companies and are seeking to launch a start-up.

Ventura County's office market is growing more diverse as more entertainment and biotech companies move to the area, Dwyer said.

Among the activity in the county, the report listed the following deals:

n Xirrus leased 25,000 square feet at 2101 Corporate Center Drive in Thousand Oaks.

n Nine medical office leases that totaled more than 21,000 square feet were signed at 425 Holland Drive in Thousand Oaks.

Industrial

The industrial market remained "steady" during the first half of the year, even as leasing activity slowed as business owners put expansion and relocation plans on hold because of concerns about the economy, the report stated.

CBRE expects that the slowdown will persist possibly into next year.

Less activity has not translated to a significant increase in vacancies because there is a lack of available industrial space. The vacancy rate last quarter was 7.9 percent, up from 7.3 percent from the first quarter and 6.5 percent from the second quarter last year.

Buyers in the industrial market have a chance at "phenomenal deals" because lenders that were burned in the residential market are recognizing the stability of commercial real estate and are offering low interest rates, said Paul Farry, senior vice president of industrial properties.

Some of the significant deals were:

n MB2 Raceway leased 58,700 square feet at 1475 Lawrence Drive, Thousand Oaks, in the Conejo Spectrum Business Park. The lease was valued at $6 million.

n Crossroads Community Church leased 32,900 square feet at 161 Plaza La Vista, Ventura.

n Records Xpress leased 39,906 square feet at 5960 Condor Drive, Moorpark.

Retail

Hit by the sluggish economy and weak sales, the retail real estate market experienced a significant slowdown this year, according to the report.

The retail vacancy rate last quarter edged up to 3.7 percent, from 3 percent in the first quarter and 2.8 percent over the same time a year ago.

"Caution is the name of the game in the retail market sector," said David Rush, senior vice president of retail properties.

Tenants are still looking for shop space, but are being careful before making decisions, Rush said.

He added that developers are checking credit before leasing to make sure that tenants are viable.

Although the rest of 2008 will probably produce lower than normal results, the fact that the vacancy rate has not exceeded 4 percent in the past three years points to the "underlying strength of the area's retail marketplace," the report said.

Deals of note were:

n In February, Tesco's Fresh & Easy Neighborhood Market opened in Simi Valley. Construction has started on an Oak Park location slated to open in September.

n Max Bene, a day spa and salon, leased 8,000 square feet at Tuscany Square in Moorpark. Tuscany Square will be anchored by Walgreens and Fresh & Easy.

n The RiverPark Collection, the first phase of retail components at Oxnard's RiverPark community, recently broke ground. Whole Foods Market will anchor the center.