SANTA CLARITA VALLEY

Economic Snapshot
a publication of the Santa Clarita Valley Economic Development Corporation

Data through July 2011 | Published on October 10, 2011

WHAT’S INSIDE
Commercial Real Estate Residential Real Estate Employment Enterprise Zone Tourism Film Sales Tax

COMMERCIAL REAL ESTATE
1 2 3 3 4 4 5 New Permits  No new permits for commercial space were issued in July 2011 by the City of Santa Clarita, compared to one new permits issued in July 2010 for 30,752 sq.ft. Tenant Improvements/Alterations  A total of 3 building permits for tenant improvements were issued in July 2011, down 63% from the 8 permits in June 2011 and down 73% from the 11 permits in July 2010.  In July 2011, a total of 32 permits for commercial alterations were issued, up 14% from the 28 permits in June 2011, and up 10% from the 29 permits for commercial alterations in July 2010. Certificates of Occupancy  In July 2011, a total of four Certificates of Occupancy were issued, of which two each were for retail and office space. By comparison, there were four Certificates of Occupancy issued in July 2010 (also two for retail and two for office space).  The Certificates of Occupancy issued in July 2011 represent a total of 14,092 square feet, of which 60% was for retail and the remaining 40% was for office space. This represents a slight decrease from the 14,467 square feet covered in Certificates of Occupancies issued in July 2010. Vacancy Rates  In the entire Santa Clarita Valley (including the City) office, retail and industrial vacancy rates have remained steady in Second Quarter 2011 from the previous quarter.  During the Second Quarter 2011, the Santa Clarita Valley’s office vacancy rate was 19.3% and retail and industrial vacancy rates were 7.4% an 6.0%, respectively.  Within the City of Santa Clarita, the office vacancy rate was 17.1% and retail and industrial vacancy rates were 6.8% and 5.4%, respectively.

City of Santa Clarita Square Footage Vacancy - Q2 2011

31%
(692,774)

32%
(721,699)

37%
(845,184)

Santa Clarita Valley (includes City) Square Footage Vacancy - Q2 2011

29.3%
(907,363)

29.4%
(910,660)

Santa Clarita Valley Vacancy Rates

30.0% 19.7% 20.0% 20.0% 7.7% 6.7% Q3 2010 20.1% 7.3% 6.2% Q4 2010 20.0% 7.6% 6.2% Q1 2011 19.3% 7.4% 6.0% Q2 2011

41.3%
(1,279,900)

10.0% 0.0%

7.7% 5.7% Q2 2010

  Office   Industrial   Retail  July 2011 Economic Snapshot Presented By 

RESIDENTIAL REAL ESTATE ACTIVITY

City of Santa Clarita Santa Clarita Valley Home Values & Sales New Permit Activity  In the Santa Clarita Valley (including the City of Santa Clarita), single-family sales volume and values regained ground lost from the beginning of the year.  Single-family median home values remained unchanged at $370,000 in July 2011 from June 2011, still below the $420,000 median home value seen in July 2010. permits  A total of 187 single family homes were sold in July 2011, down 14% from June 2011 and up 6% from July 2010. July 2011  Median condominium values increased 9% to $217,500 in July 2011 from June 2011, yet permits were down 11% from July 2010.  Condominium sales fell 9% to 73 sales in July 2011 from June 2011, yet were up 7% July 2010 from sales in July 2010. City of Santa Clarita Home Values & Sales City of Santa Clarita  In the City of Santa Clarita, single-family home values declined, while sales volume Tenant Improvement/ increased from the Summer of 2010. Alteration Activity  Single-family average home values in July 2011 were $416,100 or 4% above June 2011, yet 10% below July 2010.  A total of 142 single family homes were sold in July 2011, down 11% from June 2011, yet Permits in Permits in up 10% from July 2010. July 2011 July 2010  Condominium prices rose 6% to $221,700 in July 2011 from June 2011, yet fell 6% from one year ago.  Condominium sales volume dropped 9% to 69 units in July 2011 from June 2011, but were up 8% from sales in July 2010. July 2011 SCV Residential Real Estate Summary

3

6

62

29

APARTMENTS
Vacancies and Rents  The Apartment vacancy rate during Q2 2011 in Santa Clarita Valley was 6.5%, which is lower than the Q1 2011 rate of 8.8% and the Q2 2010 rate of 9.5%.  Despite the downward trend, vacancy rates for Q2 2011 in Santa Clarita Valley continue to exceed those in comparable L.A. Metro communities over the past year.  Average apartment rents in Santa Clarita Valley remain steady at $1,433.
Median Home Value # of Single Family Homes Sold Median Condominium Value # of Condominiums Sold Avg. Days on Market (Single-Family) (City) Single-Family Home Inventory (City) Apartment Vacancy Rate (Q2 2011 v. 2010) Avg. Apartment Rents (Q2 2011 v. 2010) NODs recorded

JULY 2011 $370,000 187 $217,500 73 60 600 6.5% $1,433 117

JULY 2010 $420,000 176 $220,000 68 58 583 9.5% $1,438 173

% Chg. -12% 6% -1% 7% 3% 3% -32% -0.3% -32%

UNEMPLOYMENT RATE


Unemployment Rate Comparison - July 2011
Santa Clarita 8.2% Pasadena 10.1% Palmdale 16.4% Los Angeles 14.6% Lancaster 18.4% Glendale 11.6% L.A. County 13.3% California 12.4%

 

The City of Santa Clarita’s unemployment rate was 8.2% in July 2011 compared to 13.3% for Los Angeles County and 12.4% for California Unemployment in Santa Clarita is slightly lower from one year ago when the rate was 8.3% The SCVEDC continues to work with the City of Santa Clarita, College of the Canyons and the Santa Clarita WorkSource Center to attract jobs, create hiring opportunities and provide training programs for the region. For more information on the available programs, please contact or the SCVEDC at (661) 288-4400.

0.0%

5.0%

10.0%

15.0%

20.0%

SANTA CLARITA VALLEY Economic Snapshot July 2011 

Page 2

Employment by Industry | Q4 2010

EMPLOYMENT | Santa Clarita Valley† 








In the fourth quarter of 2010 there ware a total of 6,051 establishments reporting employment and wages, down 0.4% from the 6,074 in fourth quarter of 2009. Total employment in the Santa Clarita area was down 2% to 70,021 jobs in the fourth quarter of 2010 from the same period in 2009. Employment fell during the fourth quarter 2010 from the previous year in every sector except construction, which rose 8%. Quarterly wages in the Santa Clarita area were up 0.4% to $797.59 million in fourth quarter of 2010 from $794.17 million in fourth quarter 2009.
Total Number of Area Jobs an Payroll

Nonclassifiable Government 0.4% Construction 11.8% 6.2% Other Services Manufacturing 3.8% 12.8% Leisure & Hospitality 14.4%

Ed. & Health Srvcs Info 10.2% 1.7% Prof. & Bus. Financial Services Activities 13.7% 5.0%

Trade, Trans. & Utilities 19.9%

Share of Business by Industry | Q4 2010

800

$794.17

$797.59

711.6

717.21 700.88 658.43 $629.69 700.21 693.57 $703.60

700

$696.83

$667.00

Natural Resources Government & Mining 1.8% 0.2% Manufacturing Construction 4.5% 8.3% Nonclassified 5.9% Trade, Trans. & Other Services Utilities 23.6% 14.9% Info 1.9% Financial Activities 7.9% Prof. & Bus. Services 13.7%

600

Q3 2009

Q4

Q1 2010

Q2

Q3

Q4

Quarterly Payroll (in millions) Quarterly Average Employment (x100)

Leisure & Hospitality 8.2% Ed. & Health Srvcs 9.0%

Since 2007, the award-winning Santa Clarita Valley Enterprise Zone has been creating jobs, encouraging local investment and saving businesses money. For more information on how your business might benefit, visit www.scvedc.org/enterprise_zone.

Jobs Created or Retained by Fiscal Year
2500 2000 1500 1000 500 0 FY 07-08 FY 08-09 FY 09-10 FY 10-11

3,955 total jobs 1,937 total jobs 612 total jobs 460 2,018 1,325 4,114 total jobs
159 in July

Tax Savings for Local Business by Fiscal Year $148.07M in
$80
Tax Savings $72.52M in Tax Savings 75,544,160

$40

152 total jobs

$0

$22.91M in 49,608,000 $5.69M in Tax Savings Tax Savings 17,222,400

$154.02M in Tax Savings
$5.95M in July

FY 11-12

FY 07-08 FY 08-09 FY 09-10 FY 10-11

FY 11-12

SANTA CLARITA VALLEY Economic Snapshot July 2011 

Page 3

TOURISM | Santa Clarita Valley
 


     

PKF Consulting reported hotel occupancy in Santa Clarita was 90% in July 2011, higher than the reported occupancy of 84% in July 2010. In comparison, occupancy rates at hotels in Los Angeles County were at 85%, up 5% from July 2010. The year-over-year increase in occupancy rate in Santa Clarita was comparable to that of San Gabriel Valley. Local average daily room rates (ADR) increased 2% in July 2011 to $106.45 from the previous year. The region’s ADR increased 9% to $164.25 in July 2011 from the previous July. Santa Clarita’s year-to-date (YTD) occupancy rates increased 9% to 75%. The City of Santa Clarita collected $253,386 in transient occupancy taxes (TOT) in July 2011, up 12.5% from July 2010.

July 2011 Southern California Occupancy & Rate Summary

TOURISM SUBREGION

OCCUPANCY OCCUPANCY RATE RATE JULY 2011 JULY 2010

ADR JULY 2011

ADR JULY 2010

Santa Clarita San Fernando Valley Pasadena Long Beach San Gabriel Valley Los Angeles Region

89.88% 82.37% 83.76% 79.60% 78.28% 85.19%

84.12% 75.37% 80.04% 73.1% 73.36% 80.01%

$106.45 $129.88 $146.77 $125.47 $95.49 $164.25

$104.28 $124.21 $139.04 $116.40 $90.97 $150.09

FILM | City of Santa Clarita 
 
   





In July 2011 a total of 28 film permits were issued within the City of Santa Clarita, up 8% from July 2010 Year to date, 200 film permits have been issued in 2011, up 14% from the 176 permits issues during the same period in 2010 The 28 permits represent a total of 59 filming days in July 2011, up 5% from 56 filming days in July 2010 July 2011 film days included: 42% for television shows, 22% for features, 19% for commercials and 17% for student/other projects. No still shoots or music video production occurred in July 2011. The estimated economic impact from location filming in July 2011 was $1,320,000, less than 1% below the $1,330,500 in July 2010. Despite the July 2011 slight decrease from the previous year, the year-to-date economic impact, is up 8% to $9,444,000 versus $8,753,000 in July 2010. Estimated Economic Impact of Filming

Number of Permits Issues

400 300
319
JULY: 28

200 100 0 2010 2011
200

Percentage of Filming Days

TV
$20,000,000 $15,000,000 $10,000,000 $5,000,000 $0 2010 2011
$9,444,000 $18,136,000

Student/Other Commercials Features Stills
JULY: $1,320,000

22%

42%
19% 17%

Music Videos

SANTA CLARITA VALLEY Economic Snapshot July 2011 

Page 4

SANTA CLARITA VALLEY ECONOMIC DEVELOPMENT CORPORATION

BOARD OF DIRECTORS
Executive Committee
Bill Kennedy – Co-Chairman Wingspan Business Consulting Don Fleming – Co-Chairman Valencia Acura Calvin Hedman – CFO Hedman Partners Dr. Dianne Van Hook – Secretary College of the Canyons Tim Burkhart Six Flags California Greg McWilliams Newhall Land Ken Pulskamp City of Santa Clarita Larry Rasmussen Spirit Holding, Inc. Roger Seaver Henry Mayo Newhall Memorial Hospital John Shaffery Poole & Shaffery, LLP Laurel Shockley Southern California Edison William Sloan California United Bank Arthur Sohikian AVS Consulting Morris Thomas The Signal Rosalind Wayman Supervisor Michael D. Antonovich

SALES TAX | City of Santa Clarita† 
  

Sales tax generated in First Quarter 2011 was above that generated in during First Quarter 2010 Total First Quarter Sales Tax revenue was $5.85 million, up 4.8% from the $5.58 million generated in First Quarter 2010 The sales tax revenue figures presented are adjusted for economic data, by removing retroactive payments of $5,000 or more into the quarter the sale was generated

2011

$5.85

$5.85M Total

2010

$5.58

$6.09

$5.96

$6.77

$23.37M Total

$0.00

$10.00 Jan-Mar Apr-Jun

$20.00 Jul-Sep Oct-Dec

$30.00
Dollars in Millions

REFERENCES
The Santa Clarita Valley Monthly Economic Snapshot is a publication of the Santa Clarita Valley Economic Development Corporation, using information provided by the following sources:  City of Santa Clarita, Building & Safety Division  Southland Association of Realtors  First American RealQuest Pro  Reis, Inc.  City of Santa Clarita, Film & Tourism Office  PKF Consulting  California Board of Equalization Data from City of Santa Clarita, Finance Division  CoStar  City of Santa Clarita, Economic Development Division  CA Employment Development Department  Bureau of Labor Statistics †Updated quarterly. The next update will in the September Economic Snapshot to be released November 2011.

Board Members
Kerry Carmody Providence Health & Services Chris Chase Triple C Electric Inc. Mark Delmarter Klassen Corporation Thomas Dudley Liberty Building Maintenance & Services Michael Gibralter Valencia Country Club Adam Gilbert Disney Corporate Real Estate Casey Kirkman AQMS Mayflower Joe Messina Wildcat Business Group Rick Robb Valencia Travel Village Nigel Stout Jones Lang LaSalle Ken Wiseman AMS Fulfillment

ECONOMIC DEVELOPMENT NEWS from scvedc.org 
  

Valley Firms Honored by San Fernando Valley Business Journal SCVEDC Valencia Firm Master of Product Placement Domain SFVBJ SCV’s BioSolar Outshining Market SCVEDC

SCVEDC NEWSLETTER
To join our bi-weekly “Economic Update” e-newsletter mailing list, email info@scvedc.org or call (661) 288-4400.

scvedc.org | (661) 288-4400

Sign up to vote on this title
UsefulNot useful