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Article: Santa Barbara, Calif.-Area Office Space Prices High, But So Are Vacancy Rates.
- Article from:
- Knight Ridder/Tribune Business News
- Article date:
- February 22, 2004
CopyrightCOPYRIGHT 2004 Knight-Ridder/Tribune Business News. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Santa Barbara News-Press, Calif. Knight Ridder/Tribune Business News
Feb. 22--Investors are paying record prices for office and industrial buildings on the South Coast, yet commercial vacancies are at their highest in years, rents are falling and few new jobs are being created -- signs that the market may be in a price bubble, especially if interest rates rise.
A bubble is characterized by a market where sales prices are increasing rapidly because of speculation and not because of solid economic reasons. For example, the technology bubble in 2000 was caused by investors buying up Internet stocks believing that prices would continue to rise, ...