Business & Tech
Office Space Filing up in Petaluma and Other Biz News
Down to Business is a weekly column that focuses on trends in the local economy and what's new with Petaluma businesses. Got a tip? Send it to reporter Kevin King, email below, or to Patch editor Karina Ioffee at karina@patch.com
Office vacancies are coming down to below 2008 levels in Petaluma, according to a report by Cassidy Turley, a commercial real estate services company.
For the first time since 2008, the office vacancy rate was under 30 percent at the end of last year. That's compared to 36.5 percent in both 2009 and 2010. To put it another way, almost three-fourths of available office space is being used today, as opposed to only about two-thirds in 2009 and 2010.
“In terms of annual growth, the Petaluma market led the way with roughly 245,000 square feet of positive net absorption in 2011,” said the report.
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Find the full report on the right
Despite the move in the right direction, there are still some concerns about whether the city’s office vacancies can keep up this pace. Most of the office space filled was in lower-end, or Class B, properties, which often charge cheaper rents than the higher-end, or Class A, office buildings.
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X2nSat, a company that provides broadband to remote and rural communities, purchased an office near Orchard Supply Hardware in December and will look to add 20 to 40 new jobs in the next two years.
The office property at Redwood Business Park and sold for $4.15 million, according to Garrett Hill of X2nSat. Located at 1310 Redwood Way, the building has 56,000 square-foot of space and will be the new headquarters for X2nSat, which now resides at 1333 N. McDowell Blvd.
The property also includes a large open area that X2nSat will use to , which the company plans to build over 10 years. The move will also help expansion.
“Right now, we employ 30 people,” said Hill. “We plan to expand to between 50 and 70 employees in the next two years.”
X2nSat,, will be looking to add jobs mainly in tech and network operations.
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Two other commercial properties have also sold in recent months.
Greenbriar Apartments for over $21 million, according to Jim Roberts of Capital Valley Investors. Capital Valley will fix up about 50 of the 224 apartment units, according to Roberts, and that process will start soon.
Also, a retail center anchored by Tractor Supply Company sold in October for $3.4 million, according to North Bay Business Journal. Tractor Supply Company its doors on Jan. 28.
