Southern California Office Real Estate Blog

LOS ANGELES COUNTY OFFICE PROPERTY SNAPSHOT – FEBRUARY 2010

SALES ARE ON THE RISE, BUT PRICES ARE WAY DOWN

By Jodi Summers

Chilling words from the Los Angeles Times regarding the Los Angeles area office real estate market, “Industry experts predict properties will have lost 40% to 50% of their value from the peak of mid-2007 by the time the market presumably reboots next year.”

But, not so bad, when you look at the statistics comparing January 2008 vs. January 2010 – in Los Angeles County, median price of sold properties is already down 99%.

Having said that, the landslide drop in prices is triggering activity in the office building sector. Comparing Jan-08 vs. Jan-10: The number of sold properties is up 33%. The 4Q market stimulus which saw the U.S. economy bound up by +5.7% (seasonally adjusted annual rate), according to estimates of the Bureau of Economic Analysis, pushed buyers into the market place. Contrasting Jan-08 vs. Jan-10, the number of under contract properties is up 300%.

“I think the next two years are going to be very tough for the office market,” said Richard Green, director of the Lusk Center and a co-author of the study. “Downtown L.A. is doing a little better than other sub-regions but it’s not immune. You have things like law firms laying people off, so when their lease rolls over they’ll need less space.”

The overall economy has shown signs that the recession may be easing, but that doesn’t hint at an imminent turnaround in office markets, which are considered lagging indicators, Green said.

“It’s the economy, then jobs, then office, in that order,” Green said. “…It’s not until jobs start growing — it’ll be six months after that before the office market picks back up.”

As for the West Side’s office market, Keith Fielding of the Klabin Co. predicted continued price compression and thawing in capital markets. “There’s a lot of money on the sidelines waiting to buy, but prices are not yet where buyers want them.”

Which is why you’ll notice that the number of for sale properties is up 88% from two years ago…and, thankfully, number of sold properties is up 33%. Let us hope the office market will continue to show promise.

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We would like your real estate business. If we can provide you with more detailed information, please contact the SoCal Investment Group through Jodi Summers, Jodi@jodisummers.com. We look forward to working with you in your next real estate transaction.

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http://www.cirbdata.com/

https://www.terradatum.com/

http://www.globest.com/news/1590_1590/washington/183353-1.html

http://www.laedc.org/eedge/index.html#1

Http://www.socalindustrialrealestateblog.com

http://www.globest.com/news/1592_1592/losangeles/183380-1.html

http://www.ladowntownnews.com/articles/2009/12/18/news/doc4b2c047540dd1295124814.txt

http://articles.latimes.com/2009/nov/05/business/fi-commre-outlook5

GREEN LEGISLATION DOMINATES IN SACRAMENTO

A HOST OF GREEN BILLS PASS IN CALIFORNIA LEGISLATURE

by Jodi Summers

Once his term as state leader is finished, do not be surprised if Governor Arnold Schwarzenegger crosses party lines and unites with former Vice President Al Gore in working for a greener world.

Green legislation and regulations have been a favorite in Sacramento since the adoption of Assembly Bill 32 in 2006, and this year is no different. The basics of the green bills signed into law this year by Schwarzenegger include:

Energy

* Assembly Bill 758 (Skinner, D-Berkeley): Requires the California Energy Commission to establish a program encouraging energy savings in existing residential and nonresidential buildings.

* Assembly Bill 920 (Huffman, D-San Rafael): Allows customers with solar and other alternative energy generators participating in a net-metering rate schedule the option of rolling over credits for excess energy generation into the following year or receiving payments from the utility at a wholesale rate.

* Senate Bill 32 (Negrete-McLeod, D-Chino): Creates a fixed-price payment for energy generated from renewable projects based on the value of renewable generation. The legislation makes it easier for the owners of storage units, vacant land, warehouses and other properties that require minimal energy consumption to transform their properties into independent solar power plants that sell back to utilities.

Greenhouse Gas Reductions/Climate Change

* Assembly Bill 1085 (Mendoza, D-Artesia): Shines “sunlight” on important regulatory procedures at the California Air Resources Board (aka CARB) by requiring it make available to the public each technical, theoretical and empirical study, report or similar document, if any, on which the agency relies, related to, but not limited to, air emissions, public health impacts and economic impacts before the comment period for any regulation proposed for adoption by the state board.

* Assembly Concurrent Resolution 77 (Swanson, D-Oakland): Urges CARB to meet the statutory requirements of the Global Warming Solutions Act of 2006, or AB32, by ensuring that its analysis of specified emission reduction measures include prescribed components.

* Assembly Bill 210 (Hayashi, D-Hayward): Encourages cities, counties and other local jurisdictions to adopt energy-efficient building standards that surpass those already included in the state’s landmark Green Building Standards Code. That code requires structures to use at least 15 percent less energy than current requirements, and sets goals for air quality, water conservation and other environmental concerns.

* Assembly Bill 531 (Saldana, D-San Diego): Delays the implementation of the state’s mandatory Energy Star benchmarking law - Assembly Bill 1103 - and requires the state Energy Commission to write implementing regulations.

Water

* Senate Bill 407 (Padilla, D-Pacoima): Requires all residential and commercial buildings to install water-conserving fixtures by 2019. Also authorizes public entities that supply water to require such retrofitting whenever real estate is transferred.

* Assembly Bill 474 (Blumenfield, D-Van Nuys): Authorizes the legislative body of any public agency to designate an area within which authorized city officials and free and willing property owners may enter into contractual assessments to finance the installation of water-efficiency improvements that are permanently fixed to real property.

* Addendum: The state remains without a water deal despite Schwarzenegger’s scheduling of a special session on the topic.

Under Governor Schwarzenegger, California has become an international leader in clean energy standards, enriching the state with clean energy investment, green jobs and a better quality of life. In the last three years, more than $6 billion in venture capital has been pumped into California’s economy, making us the national leader in the number of clean businesses. Green jobs have also skyrocketed, growing 10 times faster in California than in other areas. This growth is expected to continue, with assistance both on the state and national level.

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http://www.carealestatejournal.com/newswire/index.cfm?sid=&tkn=&eid=905490&evid

http://www.socalgreenrealestateblog.com/?p=825

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http://www.limitstogrowth.org/WEB-Graphics/CaliforniaPostcardGreetings.jpg

http://www.internationalrivers.org/files/images/Windturbines.jpg

http://forcechange.com/wordpress/wp-content/uploads/2008/03/cfl-float.jpg

SCHWARZENEGGER HAS A GREEN LEGACY, BUT OUR ECONOMY STILL SUCKS

SCHWARZENEGGER HAS A GREEN LEGACY, BUT OUR ECONOMY STILL SUCKS

By Jodi Summers

Arnold Schwarzenegger is now an international superstar in more than one arena. First it was movies, now it’s global warming. During his terms as governor, California’s bold energy programs are influencing national and international policies.

Three years after California adopted AB 32 - California’s landmark 2006 global warming initiative,

1- The Obama Administration announced that the U.S. Environmental Protection Agency will adopt a vehicle emissions standard modeled after California’s first-in-the-nation standard

2- The International Code Council announced the state’s newly adopted Green Building Standards Code will serve as a foundation for commercial buildings worldwide.

3- California participated in the launch of China’s first GHG emissions registry.

Being a leader in clean energy standards has made California a leader in clean energy investment and green jobs. In the last three years, more than $6 billion in venture capital has been pumped into California’s economy, making us the national leader in the number of clean businesses. Green jobs have also skyrocketed, growing 10 times faster in California than in other areas. This growth is expected to continue. According to a recent study, California is on track to more than double its power generated by solar panel installations in 2009.

Sounds brilliant, yet our economy is currently down the tubes. Only our future is filled with green.

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http://gov.ca.gov/issue/energy-environment/

http://www.sgvtribune.com/news/ci_13345618?source=rss

http://www.latimes.com/business/la-fi-power16-2009sep16,0,3412344.story

http://www.pollsb.com/photos/o/38053-relase_greenhouse_gasses_atmosphere_believed_cause_global_climate_changes_following_causes_increase_greenhouse_gas_emissions.jpg

http://tvtropes.org/pmwiki/pmwiki.php/Main/ArnoldSchwarzenegger

http://en.cop15.dk/files/images/1col_492px/chinaenergy_19980822-134048-7_web.jpg

CURBING GREENHOUSE GAS EMISSIONS - THE GOVERNATOR’S LEGACY

CURBING GREENHOUSE GAS EMISSIONS - THE GOVERNATOR’S LEGACY

By Jodi Summers

Governor Arnold Schwarzenegger will eventually leave office, but his impact may be felt for generations to come. AB 32 and Order S-21-09 – California admirably and aggressive energy initiatives pushed forward by our governor, may actually make the world a cleaner, better place.

“Global warming is a global problem that requires a global solution and I am committed to working toward that solution so our children and grandchildren are left with a clean environment and a strong economy,” observes Governor Arnold Schwarzenegger. “Our policies have influenced the world.”

Thought you’d all appreciate a little primer on AB 32 and Order S-21-09 – California’s bold green energy strategies.

The regulations authorized under AB 32, California’s landmark 2006 global warming initiative gave us the world’s first comprehensive law to reduce greenhouse gas (GHG) emissions. Current law requires investor-owned utilities such as Edison to produce 20% of their power from wind, solar and geothermal energy by 2010 (a target they are expected to miss.)

AB 32 mandates a reduction of California’s GHG emissions to 1990 levels by 2020 and calls for an 80 percent reduction from 1990 levels by 2050. The state has approved an AB 32 Scoping Plan as a blueprint for reducing GHG emissions, adopted measures from the Low Carbon Fuel Standard to the Pavley Vehicle Standards to address 40 percent of its overall goals and is working on more than 20 additional measures such as a cap-and-trade system to fully meet AB 32 mandates.

Recently, the Governator signed Executive Order S-21-09, directing the California Air Resources Board to adopt regulations increasing California’s Renewable Portfolio Standard to 33 percent by 2020 - putting California on track to becoming the largest clean energy producer in the nation.

“Every year it becomes more apparent that no single issue threatens the health and prosperity of our world, or provides a greater opportunity for economic success than climate change,” concludes the governor. “That is why California has stepped up to take the lead. Three years ago I signed the world’s most comprehensive global warming law and since then our emissions have been reduced, our green economy has grown and our policies have influenced the world.”

Once his term as governor is finished, Arnold Schwarzenegger may find himself joining former Vice President Al Gore in the crusade for a cleaner planet.

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http://gov.ca.gov/issue/energy-environment/

http://www.sgvtribune.com/news/ci_13345618?source=rss

http://www.latimes.com/business/la-fi-power16-2009sep16,0,3412344.story

http://www.environmentamerica.org/uploads/ig/hp/ighpWSCwRpKVJbuUaA7LCA/DSC_0263.jpg

http://image.guardian.co.uk/sys-images/Guardian/Pix/martin_rowson/2006/09/01/rowsonatlas512.jpg

http://www.pollsb.com/photos/o/38053-release_greenhouse_gasses_atmosphere_believed_cause_global_climate_changes_following_causes_increase_greenhouse_gas_emissions.jpg

http://tvtropes.org/pmwiki/pmwiki.php/Main/ArnoldSchwarzenegger

http://images.businessweek.com/ss/06/04/sb_presentations/source/7.htm

LOS ANGELES OFFICE PROPERTY SNAPSHOT – JANUARY 2010

LOS ANGELES OFFICE PROPERTY SNAPSHOT – JANUARY 2010

By Jodi Summers

Yes, 2009 was a very forgettable year, offices vacancies were out of control, and it seemed liked the office market was falling off the abyss. But as the year came to an end, there was indeed good news on the job front, according to the National Association of Realtors. In November, payroll jobs were reduced by only 11,000; and improvement job cuts averaged 688,000 per month in the first quarter, 512,000 per month in the second quarter, 288,000 per month in the third quarter, and 111,000 in October.

The average hours worked by an employee rose in November as well, implying more full-time hours over part-time. Moreover, employment information from households and not from established companies suggests a net job addition. A total of 227,000 jobs were added when based on household survey, thereby nudging the unemployment rate lower to 10.0 percent in November from 10.2 percent in the prior month.

It has been reported that commercial real estate value declines will average more than 40 percent below previous highs of mid-2007. Locally, in Los Angeles County, from December 2007 – December 2009 The median price of for sale properties is up 394% and the median price of sold properties is down 72%. Meantime, volume is up by 86% and the number of sold properties is down 75%

The Urban Land Institute notes business environment for commercial real estate in 2010 will be as unsatisfactory as the recession of the early 1990s.

It has been predicted that many late-cycle buyers of 2005 through 2007 could find themselves struggling with foreclosures because of high sales prices, weakening occupancy and commercial mortgage-backed securities (CMBS) coming due.

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http://saratogavoice.com/wordpress/2009/10/20/california-real-estate-forecast-for-2010/

http://nyrej.com/37067

http://www.realtor.org/research/economists_outlook/commentaries/forecast1209

http://pittsburgh.bizjournals.com/pittsburgh/stories/2009/12/07/daily30.html

https://www.terradatum.com/agentmetricsonline/report_chart_view.td

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INDUSTRIAL PROPERTY FORECAST

INDUSTRIAL PROPERTY FORECAST

By Jodi Summers

Industrial properties in near the Southern California airports and ports were long considered to be secure investments, for seemingly obvious reasons…

1. Two of the country’s three largest ports.

2. An organized, but congested distribution hub.

3. A world of growing economies exchanging products, and the need to store these products as they arrived / departed our shores.

With the world economy at a standstill, this has certainly changed. Currently, the

Industrial market is in serious pain. Los Angeles area industrial vacancy rates are down 8.2%, and the increase in space has led to a drop in rental rates by 10% or more.

It’s a buyer’s market. Investors are saying that SoCal industrial volume sales are at their lowest in a decade. The Society for Industrial and Office Realtors (SIOR) reports, “The Industrial marketplace is suffering from decreased leasing activity, a steeper decline in rental rates, and higher levels of tenant concessions. It is also expecting higher vacancy rates.”

Industrial real estate is not alone. Although everyone would love to paint a prettier picture, currently, the commercial market is in turmoil. Research from the Realtor Commercial Alliance concludes that thus far this year, virtually all commercial sectors throughout the country are down. (Someone prove us wrong please.) The economic shift has caused the demand for commercial properties to drop precipitously, bringing down prices and rents. Add to this scenario maturing commercial debt, with credit available to bolster the need for funds…and voila, you have a jump in delinquencies and distressed properties. Sellers outnumber buyers, vacancy rates are rising in all sectors.

“You just have to hang on as best you can right now,” notes sophisticated investor, EW Moon.

SIOR notes that the Western U.S. industrial sector is suffering more than other regions of the country. “Its overall market is suffering from the largest decline in asking rents, the lowest level of leasing activity, the highest level of available sublease space, thedeepest level of landlord concessions, and higher vacancy rates. The short term outlook for the West is the lowest of all regions, with sales prices that are lower than replacement costs.

Looking forward to brighter days, there are signs that economy is no longer cannonballing into a depression. The gross domestic product (GDP) declined only 1.0% in the second quarter of 2009. This can be considered hopeful news after a 6.4% decline in 1Q 2009, and a 5.4% drop in 4Q 2008.

Are you interested in knowing the condition of your local real estate market? Email jodi@jodisummers.com to receive a free market report for your LA county neighborhood.

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http://www.realtor.org/wps/wcm/connect/83575f004f476966b69ff74e813808c1/FullCREO09August.pdf?MOD=AJPERES&CACHEID=83575f004f476966b69ff74e813808c1

http://www.socalindustrialrealestateblog.com/?p=422

GREEN OFFICE AND INDUSTRIAL REITS SHOWING PROMISE

GREEN OFFICE AND INDUSTRIAL REITS SHOWING PROMISE

By Jodi Summers

Office and industrial REITs expect to remain tightly focused for the balance of the year –evaluating the damage to occupancy and rents twisted by current economic conditions.Expect REITs to be greening and negotiating sexier leases mitigate potential damage.

Buildings are responsible for 40% of emissions, and commercial sectors such as industrial and office are greening to cut costs and attract hipper clients.

Taking such savvy acts, coupled with the 2^nd + 3^rd quarter strengthening of the economy have motivated market observers to observe that the publicly traded REIT market at bottom or near bottom.

A recent CBRE Investors report noted that “the bottom of the capital market cycle may be close,” with pricing metrics on U.S. commercial real estate starting to look attractive again to buyers.

“Much of the recent negative press about commercial real estate reflects the experiences of distressed owners,” CBRE noted in their report. “However, from

prospective buyers’ perspectives, many pricing indicators look historically favorable,” based on the current widening spread between aappraised-value cap rates and risk-free 10-year U.S. Treasury bonds.

“Just as REITs led the private markets in 2007 and 2008, it is probable that the recent share-price recovery is an early indicator that a trough in private markets is coming soon.”

Energy saving upgrades such as timed lighting + cooling, white roofs and thin solar films to cover the windows of office buildings are cutting back on cooling costs and increasing user comfort.

CoStar’s office and industrial market report stated that average sale prices, while down significantly from their 2007 peaks, are at or close to their historical averages. Cap rates have expanded sharply during the same period but are also in line with historic averages.

REITs comprise just 10% of the commercial real estate market, but wield significance as a bellwether for future commercial real estate conditions.

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http://www.costar.com/News/Article.aspx?id=6A1CBF26B572D3A957377280529227C0&ref=100&iid=143&cid=383F14EEE265B182474DA2442BACBBBF

http://www.socalofficerealestateblog.com/?p=405

http://www.socalofficerealestateblog.com/?p=570

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SAM ZELL’S INVESTMENT STRATEGIES

SAM ZELL’S INVESTMENT STRATEGIES

By Jodi Summers

Expectations of a crash in commercial real estate market are “greatly exaggerated,” noted media and real estate magnet Sam Zell recently in Chicago. “Everyone is waiting for the grave dancer to come and exercise his magic potion, but you need two to tango.”

Speaking at the at the first “Invest for Kids” conference in downtown Chicago, Zell noted that owners of office and apartment buildings today have no incentive to sell. By 2011 or 2012 they will likely be able to fill their vacancies, albeit at rates 30% below their peaks, because demand will catch up to supply, he observed.

Optimistically he shared the fact that the U.S. population is growing and with fewer building starts in the past decade, demand for housing will rise.

Then again, Mr. Zell has made some interesting predictions. Financial mogul Sam Zell, owner of the Tribune Co., recently told an Israeli business conference that the U.S. real estate market will be in recovery by spring 2009.

Chicagoan Sam Zell is best known for owning and defaulting such famous media properties as the Los Angeles Times, Chicago Tribune and New York’s Newsday. Media aside, Zell’s fame and $6 billion net worth originate from his mastery of real estate investing principles. This mastery, demonstrated repeatedly over a 40-year career, results from Zell’s acute understanding of real estate market mega-trends and his dedication to turning around troubled properties.

Zell got into real estate investing in the 1960s, during the time he received his bachelor’s (1963) and law degrees (1966) from the University of Michigan. It started when he finagled his way into a property management role with a local landlord. Next, Zell began buying distressed properties, fixing them up and rent them to students. Zell was a hands-on landlord who put a lot of energy into scouting and fixing up locations.

According to About.com, “In 1969, Zell and his partner Robert Lurie formed Equity Properties Management Corp. to centralize Zell’s rapidly diversifying investments in real estate. In the 1970s, Zell expanded beyond his initial interest in residential real estate and began to acquire office space under the aegis of Equity Office Properties Trust, or EOP. Zell structured his business as a series of real estate investment trusts, or REITs, under the Equity umbrella. EOP was one REIT; Equity Residential Properties Trust was another. The REIT structure allowed Zell to radically reduce his corporate income taxes. In addition to exploiting the REIT tax structure, Zell polished his skills as a salesman and convinced an increasing number of investors to entrust their money to him.”

Zell, with Robert H. Lurie went on to found the Equity Group Investments, LLC, which spawned three real estate public companies, including: Equity Residential, the largest apartment owner in the United States; Equity Office Properties, the largest office owner in the country; and Manufactured Home Communities, a mobile home company. In addition, Zell has created a number of public and private companies.

He proceeded to grow his office properties - Equity Properties Management REITs into strong national brand names. This project met with marginal success, as enterprises tended to buy office space based on local differentiators such as price and management, not on national differentiators such as brand name. Zell had to sell some office space for less than what he paid for it, but this did not cost him his whole empire, and he sold this part of his portfolio to Blackstone for $36 billion in 2006, and in 2007, Zell acquired a portfolio of newspapers owned by the Tribune Co., including the Chicago Tribune, Los Angeles Times, Newsday and Baltimore Sun. …an odd time to buy newspaper franchises.

Currently, Zell recently raised $625 million to invest in “credit opportunities.”

“In every market and in every situation there is opportunity,” Zell concluded.

“In my 40 years in real estate, I’ve found there is only one metric that matters — replacement cost.” He noted that the spread between a building’s replacement cost and its economic value is as wide today as it was in 1993 — mainly because the cost of construction has increased.

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http://www.businessweek.com/the_thread/hotproperty/archives/2005/11/zells_favorite.html

http://www.chicagorealestatedaily.com/cgi-bin/news.pl?id=36105&print=1

http://www.socalmultiunitrealestateblog.com/?p=201

http://homebuying.about.com/lw/Business-Finance/Real-estate/Sam-Zell-Real-Estate-Magician.htm

http://en.wikipedia.org/wiki/Sam_Zell

http://www.businessweek.com/the_thread/hotproperty/zell2.jpg

http://reason.com/assets/mc/mwelch/2009_10/SamZell.jpg

http://www.richsamuels.com/nbcmm/zell/images/zellhs.jpg

http://images.businessweek.com/ss/08/07/0731_zell/image/zell.jpg

URGENT! CONTACT YOUR CONGRESSMAN TO AVOID COMMERCIAL REAL ESTATE TAX HIKES

Action  to Oppose More Than Doubling of Taxes on Real Estate Carried Interests

Edited by Jodi Summers

In early December, Congressman Charles Rangel Ways, chairman of the Ways and Means Committee of the House of Representatives, introduced the “Tax Extenders Act of 2009″ (H.R. 4213).  Wrapped in this legislation package is a proposal that would more than double the taxes on carried interest received by general partners in real estate partnerships. Under this legislation, carried interest would no longer be taxed as capital gains at 15 percent, but as ordinary income at rates as high as almost 35 percent…making everyone’s investment real estate holdings a lot less sexy.

Kick us while we’re down. Those investing in commercial real estate are already feeling economic distress because of the decline of property values and the lack of loans available. The proposed legislation would more than double the taxes imposed on many real estate entrepreneurs.

If H.R. 4123 enacted into law, this proposal could be the largest modification to the taxation of real estate since the Tax Reform Act of 1986.

This bill was past stealthfully, proposed on December 7^th, it bypassed the customary legislative process, bypassing the House Ways and Means Committee, and going directly to the House floor for a vote on December 9, reducing meaningful opportunities to amend the bill.

Safeguard your real estate assets; communicate with your Congressional Representatives and Senators! Let them know that this tax increase on carried interest will further damage the commercial real estate industry and undermine efforts in their own communities to spur job growth and economic recovery.

http://www.capwiz.com/naiop/issues/alert/?alertid=14439831&type=CO has letters ready to go to your congressmen.

Save your assets and contact them.

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http://www.capwiz.com/naiop/issues/alert/?alertid=14439831&type=CO

http://www.ysop.org/images/Capitol.jpg

LOS ANGELES OFFICE PROPERTY SNAPSHOT – DECEMBER 2009

LOS ANGELES OFFICE PROPERTY SNAPSHOT – DECEMBER 2009

By Jodi Summers

Before we get into the gritty details of the Los Angeles office market, let us share with you the comfortable words of noted media and real estate magnet Sam Zell, expectations of a crash in commercial real estate market are “…Greatly exaggerated… Everyone is waiting for the grave dancer to come and exercise his magic potion, but you need two to tango.”

Zell observed that owners of office and apartment buildings today have no incentive to sell. By 2011 or 2012 they will likely be able to fill their vacancies, albeit at rates 30% below their peaks, because demand will catch up to supply.

Look forward to 2011 or 2012 because the current picture is not so pretty. According to Clarus Market Metrics, in L.A. County between November 2007-November 2009 the number of properties for sale is up 60%, and the demand is virtually nonexistent…two properties have sold.

The Bureau of Economic Analysis has released preliminary estimates of corporate profits in the third quarter of 2009. The LAEDC Economic Forecast notes that total corporate profits were still down by -6.7% compared to 3q2008.  Profits of U.S. financial industries were up by +25.4% over the year.  However, U.S. nonfinancial industries’ profits were down by -12.5%.  Also, net profits from the “rest of the world” decreased by -19.1% over the year, reflecting the global nature of this recession.

Locally, our aerospace industry is confronting its own challenges in 2009-2010. Defense spending is slow, while commercial aircraft production is declining outright as profit-starved airlines reduce orders.

The LAEDC reports that the areas most severely impacted by job losses are: Santa Clarita (which will lose 6,000 jobs), North Gateway and East L.A./Eagle Rock (both expected to lose 5,300 jobs). Sub-areas losing the fewest jobs will be: the San Fernando Valley (down by 1,700).

For the record, Los Angeles County has a diverse economic base (based on the concept of “industry clusters”). Measured by 2007 employment, the leading industries are: 1.) tourism and hospitality with 456,000 workers; 2.) professional and business services with 288,000 workers; 3.) direct international trade with 281,000 workers; 4.) entertainment (motion picture/TV production) with 244,000 workers; and 5.) wholesale trade and logistics with 199,000 workers.

The “new economy” of Los Angeles County is primarily technology driven. This cluster includes bio-medical, digital information technology, and environmental technology, all of which build on the vibrant technological research capabilities of the County. Another key driver is creativity. There is a growing fusion between technology and creativity such as in video games and film production.

“The five Southern California metro areas are struggling in 2009,” concludes Jack Kyser, Founding Economist of the Kyser Center for Economic Research. “Job losses will continue in construction, manufacturing, retailing and leisure and hospitality services.” Measured by percentage declines in non-farm jobs, the Riverside-San Bernardino area and Ventura County are feeling the most pain, and will record employment declines of 6.7 percent and 5.1 percent respectively. Orange County should see employment drop by 4.8 percent, while Los Angeles County should record a decline of 4.1 percent. San Diego County will see a 3.8 percent loss in non-farm jobs.

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http://www.laedc.org/businessscan/charts

http://www.laedc.org/newsroom/releases/2009/072209_MidYearForecast.pdf

http://www.grubb-ellis.com/research/reports.aspx

http://www.laedc.org/eedge/index.html

http://www.chicagorealestatedaily.com/cgi-bin/news.pl?id=36105&print=1

http://www.epodunk.com/cgi-bin/genInfo.php?locIndex=10443

http://wpcontent.answers.com/wikipedia/commons/thumb/5/54/Los_Angeles_County_Pubic_Transport.png/400px-Los_Angeles_County_Pubic_Transport.png

http://www.cityyear.org/uploadedImages/CityYear/Local/Los_Angeles/Our_Work/2006.03.05.hollywood.sign.sized%5B1%5D.jpg