Industrial Construction Viewed With Some Hope

Industrial construction in Ventura County is still on the ropes, but there’s a glimmer of hope, says Robert Larson, who heads operations in the county for Oltmans Construction Co., one of the county’s largest builders of factories, warehouses and other large projects.

Because of the slowdown in industrial building in the last two years, the county’s supply of large, unoccupied industrial structures is almost totally depleted, Larson said.

As a result, he’s receiving more inquiries at his Thousand Oaks headquarters from companies interested in developing structures of 100,000 square feet or more for their own use. “The calls come in spurts, mainly from people interested in moving here from the San Fernando Valley,” Larson said.

“The savings and loan debacle ended the financing of speculative buildings. During the ‘80s, people were launching projects with 90% to 100% financing. Today, a developer is lucky to get 60% financing.” Now, a developer usually needs to show a lender a long-term lease before a project can be financed, Larson said.

Despite increased interest from potential customers, industrial construction is still a long way from making a complete comeback, Larson said. “An improving economy will help, but for really meaningful improvement, we’ll need changes in banking regulations and some freed-up financing.”

Larson, an Oltmans assistant vice president, said the Whittier-based company had revenues of $90 million in the year ended March 31, down sharply from $197 million the previous year. The Ventura County unit, whose revenues came to about $20 million last year, has seen its payroll shrink to 225 from 525 employees in the past two years, Larson said.

Oltmans, which claims to be Ventura County’s largest general contractor, has built such projects as the Simi Freeway Commerce Center in Simi Valley, the Conejo Corporate Center in Newbury Park, the Camarillo Commerce Center and the Ventura YMCA building.