Saturday, November 29, 2008

Office Space in Exurbia

by Calculated Risk on 11/29/2008 08:22:00 AM

I've written several times about Temecula as an example of exurbia in California.

Look at Temecula on this map. San Diego is far to the south - living in Escondido is a tough enough commute to work in San Diego. And Orange County is an even more difficult drive to the west.

Note: you can move the map around to see the relationship of Temecula to San Diego, Riverside and Orange County.

My earlier posts focused on housing in Temecula, but one of the key industries in exurbia has been ... what else ... construction. So not only are a large percentage of the homes in foreclosure, but commercial real estate is getting hit especially hard.

From the North County Times: Report sees rising office vacancies in 2009
The Grub & Ellis/BRE Commercial report said the space glut will really take hold in the Temecula Valley area, which has had an especially heavy emphasis on real estate-related office tenants.

At the peak of the market, around 2006, 45 percent of Temecula Valley office tenants were escrow, real estate, mortgage and title companies, said Mark Esbensen, a Grubb & Ellis managing director who helped prepare the report. Much of that space is now being vacated.
emphasis added