Februar y/March 2014
KERN BUSINESS JOURNAL
25
Artist rendering courtesy of Gregory D. Bynum and Associates
Gregory D. Bynum and Associates Inc. is planning to build an office complex on the campus of California State University, Bakersfield.
Back at the office Nothing speaks to optimism for the local economy like new office construction. That has begun to happen in Bakersfield. It isn’t happening everywhere in the city, however. Local commercial real estate people say the sweet spot is the southwest part of town, around Cal State Bakersfield. A two-story office building recently opened at 11200 River Run Blvd., not far from the university, and brokers at Newmark Grubb ASU & Associates say there’s talk of work beginning at other lots soon, depending on the success of preleasing marketing campaigns that began in 2013. One such effort is Stockdale Centre, a project that ultimately could consist of 270,000 Bakersfield office square feet of ofvacancy rates fice space, across Bakersfield's office market has stabilized since the peak of the Coffee Road recession. It's nowhere near the from the Town & heyday of 2007, when a proliferation of mortgage and real estate offices Country Village brought vacancy rates to as low as shopping center, 4.35 percent. But rates have held below 10 percent for three years now along Stockdale — and they're down to 1.6 percent in Highway. the area around Cal State Bakersfield, the city's lowest. Brokers at Pacific CommerVacancy rates 15% cial Realty Advisors, representing 12 11 10.5 9.7 property owner GC 8.8 8.6 9 Investments, say construction will 6 Figures in begin in phases graphic 3 when each of four have been rounded off proposed three0 2009 2010 2011 2012 2013 story buildings Source: Newmark Grubb ASU & Associates become 60 percent leased. THE CALIFORNIAN Another office project in the planning stages is Gregory D. Bynum and Associates Inc.’s proposal for up to four buildings comprising 283,000 square feet on Cal State Bakersfield land at the north-
Artist rendering courtesy of Cushman & Wakefield Pacific Realty
An artist rendering shows the design of an office complex proposed for construction at the intersection of Stockdale Highway and Coffee Road.
west corner of Camino Media and Scarlet Oak Boulevard. It, too, would be built in phases, starting with a three-story structure expected to begin construction this year. Judging only by the numbers, the local market is tightening up, with five consecutive quarters of office vacancy rates
below 9 percent, according to Newmark Grubb data. By comparison, Newmark Grubb reported that Fresno’s office market was 15 percent vacant at the end of September, which was the latest figure available. Continued on PAGE 26