Southern California Industrial Real Estate Blog

L.A. COUNTY INDUSTRIAL PROPERTY SNAPSHOT – FEBRUARY 2010

Signs of Hope

By Jodi Summers

Look forward, better times are on the horizon. U.S. economic growth surged during the fourth quarter!! According to estimates of the Bureau of Economic Analysis, the U.S. economy bounced up by +5.7% last quarter (seasonally adjusted annual rate). This pace was the biggest increase since the third quarter of 2003.

This growth impacted the industrial sector in several ways:

* Industrial production increased. As output grew, the net rate at which firms drew down inventories plunged as many businesses decided to produce more goods and sell less out of inventory. This change supplied the single biggest boost to the economy, adding a celebratory +3.4 percentage points to the quarter’s growth rate.

* Exports continued to grow rapidly, which contributed +1.9 percentage points to the quarterly growth rate.

The industrial market needs these signs of optimism as, according to Clarus Market Metrics, contrasting Jan-08 vs. Jan-10, the median price of for sale properties is down 47% and the median price of sold properties is down 100%…so Los Angeles County industrial properties need all the stimulus they can get.

Hope is on the horizon. CoStar commercial real estate service reports that while industrial vacancies stubbornly high across the country, they are now flattening. Leasing activity is starting to pick up and, unlike previous downturns, the market is not plagued by an overhang of new supply. Locally, there is still a lot of volume on the market. Comparing Jan-08 vs. Jan-10, the number of for sale properties is up 48% and the number of sold properties is down 100%

Jan-08 vs. Jan-10 shows the number of expired properties is up 100%. Prices have dropped so low, that those who do not have to sell, are waiting and holding. Buyers and sellers are coming to terms with losses inflicted by the recession and the bursting of the real estate bubble, and realizing 2010 can only be brighter.

On the Westside, “There are preliminary signs of price stabilization in leases and sales,” in the industrial market, concludes Klabin Co. principal Luke Staubitz. Transaction volume, which began building last September, “will continue to increase throughout the year with tenants holding the pocket aces,” Staubitz said.

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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 or call 310.392.1211. 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.SoCalGreenRealEstateBlog.com

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

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

http://ellencarrlee.files.wordpress.com/2009/10/loading-dock.jpg

http://www.costar.com/News/Article.aspx?id=3C0803868E6B292E543549E07D5083C4&ref=100&iid=167&cid=383F14EEE265B182474DA2442BACBBBF

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

http://www.iamnotastalker.com/wp-content/uploads/2008/01/img_18842.jpg

HUD AND DOT WORKING TOGETHER FOR MORE LIVABLE CITIES

HUD AND DOT WORKING TOGETHER FOR MORE LIVABLE CITIES

By Jodi Summers

Government statistics show that the average working American family spends nearly 60 percent of its budget on housing and transportation costs - making these two areas the largest expenses for the average household. Now the government wants to help.

The U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of Transportation (DOT) are working together in hopes of helping American families gain better access to affordable housing, more transportation options, and lower transportation costs by creating affordable, sustainable communities.

Like putting in our light rail system, this is a long process. Over the next four years, every major metropolitan area in the country will do an analysis of integrated housing, transportation, and land use planning and investment.

Recently, HUD Secretary Shaun Donovan and DOT Secretary Ray LaHood presented the official vision for sustainable communities at a U.S. House of Representatives Appropriations Subcommittee on Transportation and Housing hearing titled, “Livable Communities, Transit Oriented Development, and incorporating Green Building Practices into Federal Housing and Transportation.”

“One of my highest priorities is to help promote more livable communities through sustainable surface transportation programs,” offered Secretary LaHood. “This partnership will help expand every American family’s choices for affordable housing and transportation,” said Secretary Donovan. “HUD’s central mission - ensuring that every American has access to decent, affordable housing - can be achieved only in context of the housing, transportation, and energy costs and choices that American families experience each day.”

DOT and HUD have created a high-level interagency task force to better coordinate federal transportation and housing investments and identify strategies to give American families:

• More choices for affordable housing near employment opportunities;

• More transportation options, to lower transportation costs, shorten travel times, and improve the environment; and

• Safe, livable, healthy communities.

The HUD/DOT task force has the goal of enhancing integrated regional housing, transportation, and land use planning and investment. Planning grants will be made available to metropolitan areas, and create mechanisms to ensure those plans are carried through to localities. DOT will encourage Metropolitan Planning Organizations (MPOs) to conduct this integrated planning as a part of their next long-range transportation plan update and will provide technical assistance on scenario planning, a tool for assessing future growth alternatives that better coordinate land use, and transportation planning.

http://www.hud.gov/offices/cir/test090318.cfm

http://www.inman.com/news/2009/03/19/partnership-targets-affordability-transportation

http://transit-safety.volpe.dot.gov/safety/sso/MeetingSummary/images/1-dotlogo.gif

http://t4america.org/logos/t4logo_square.jpg

REGISTER YOUR CELL PHONE ON THE DO NOT CALL LIST

REGISTER YOUR CELL PHONE ON THE DO NOT CALL LIST

By Jodi Summers

Cell Phone Numbers Go Public this month….meaning cell phone numbers are being released to telemarketing companies and you will start to receive annoying sales calls on your cell phone…and YOU WILL BE CHARGED FOR THESE CALLS.

To prevent this, call the National DO NOT CALL list number from you cell phone. That number is - 888-382-1222.

Registering will block your number for five (5) years.

FYI - You must call from the cell phone number you want to have blocked. You cannot call from a different phone number.

YALE PICKS THE TEN MOST ENVIRONMENTALLY FRIENDLY COUNTRIES

YALE PICKS THE TEN MOST ENVIRONMENTALLY FRIENDLY COUNTRIES

Edited by Jodi Summers

Every year, Yale University releases an Environmental Performance Index (EPI), calculating national environmental factors such as a country’s environmental health, air pollution, water resources and productive natural resources. So let us present to you the most recent top 10 winning countries who can boast the title of the most eco-friendly nations in the world.

1 - Switzerland

Switzerland’s hard-line legislation on pollution makes it one of the world’s most eco-friendly nations. Switzerland’s strategy is to continue to foster cooperation between organizations and individuals. To make sure everyone is acutely aware of how precious the environment can be, Switzerland charges for their water and waste management services as well as establishing severe environmental taxes. Prevention is the third key tenet, shown by the 2006 development of the Federal Office for the Environment (FOEN), to sustain natural resources and develop safety measures for natural hazards.

2 - Norway

Overcast Norway is the home of the world’s largest solar production plant, owned by REC Group. Norway has also taken emissions seriously, and is now planning on becoming carbon neutral by 2030, not 2050 as originally expected. The change in anticipated timing has been reduced because of what Norway has learned by funding green projects abroad and reducing at-home driving and flying.

3 - Sweden

Sweden’s mandate for a country free of fossil fuels by 2020 puts it as the third most eco-friendly country on the planet. Already, a majority of Sweden’s power is either nuclear or hydroelectric. Solutions for automobile and flight transport include ethanol and animal waste conversion. Additionally, Sweden is one of the world leaders working on harnessing the power of waves. At the University of Uppsala, Sweden is developing “wave power” which converts waves into 4x as much energy as solar power in the same amount of time, with no waste and no emissions.

4 - Finland

Finland is experiencing a remarkable recovery from industrialization, using initiatives to clean up water and air quality in industrial areas, and practicing land preservation. Bravo as Finland has managed to reverse deforestation. The country’s forests are now growing at a greater rate than they are being deforested, showing an environmental gain even with the annual timber harvest. Finland can also be attributed with starting the United Nation’s Environmental Program (UNEP) Task Force for Sustainable Building and Construction, which looks not only at the sustainability of the building, but of the resources and process used to construct it.

5 - Costa Rica

With 5% of the world’s biodiversity contained in one country, Costa Rica has always been on the forefront of environmental conservation. Did you know that a full quarter of the nation is devoted to park preservation? That helps the country score high on the EPI list. Couple their conservation efforts with the fact that Costa Rica uses hydroelectric power in 80% of the country, and add on their 5% gas tax which funds environmental programs, and Costa Rica comes in fifth.

6 - Austria

It’s very impressive that Austria’s environmental conservation measures are enforced by all levels of government, from federal to municipal authorities. For example, waste disposal is a highly regulated department encompassing everything from individual waste to corporate chemical, air and agricultural pesticide pollution. Water quality and forest preservation, are extremely high on Austria’s list of priorities, thus the quality level for Austria’s lakes and rivers is among the highest in the world. The development of Austria’s National Protective Forest Plan has also helped in keeping the nation’s natural beauty pristine.

7 - New Zealand

New Zealand‘s relatively small population in relation to land mass has helped preserve this nation’s natural resources. While automotive emissions and industrial pollutants are still problematic, New Zealand is working hard to develop restrictive legislation and alternative energy sources. The nation was host to the 2008 World Environment Day, and has developed the Environmental Risk Management Authority, which regulates the introduction of non-native species and environmental components so as not to threaten New Zealand’s pristine atmosphere.

8 - Latvia

The Baltics weigh in. By monitoring and reducing water pollution, Latvia’s salmon crop and freshwater bodies are all in the range of “good.” Taken steps toward improvement, Lativia has begun dismantling pollutive farms to reduce fertilizer and insecticide chemicals and allow room for the return of natural forests. Since obtaining freedom from the Soviet Union 1990, Lativa has decreased stationary pollution by 46% and wastewater by 44%, devoting a major portion of environmental funds to water treatment and energy conservation techniques.

9 - Colombia

Beating Costa Rica, Colombia is home to 10% of the world’s species, giving the country a wealth of ecological diversity. While Colombia has had problems in the past concerning deforestation, the detrimental effects of the coca trade, and political strife involving their natural oil deposits, these factors have served to motivate Colombia towards energy conservation and new, less politically tumultuous resources. Colombia has also begun programs for the cultivation of natural parks that support the growth of native medicinal plants with preserves such as the Orito Igni-Ande Medicinal Flora Sanctuary, a 10,626 hectare preserve.

10 - France

The French government is very aware of the problem of climate change. Their strict environmental protection measures are incorporated into the national Constitution and reviewed every year with the eventual goal of 54 million tons of saved C02 by 2010. France is one of the few in the Kyoto agreement to cut such a large amount of emissions so quickly. The country’s laws are comprehensive, covering every layer of production from supplier to producer to consumer. This has helped make France the number one producer of renewable energy sources in the EU, 78% of its energy being nuclear powered, which in turn has reduced nitrogen oxide and other hazardous emissions by 70%.

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Sources:

http://epi.yale.edu/Home

http://epi.yale.edu/CountryScores

http://www.bemoreeco.com/2009/03/top-10-eco-friendly-countries/

http://www.sussex.ac.uk/International/europe/Sweden.jpg

http://greenferret.files.wordpress.com/2008/09/switzerland-mountain-lake.jpg

http://www.boxturtlebulletin.com/tag/norway

http://www.ippnw-students.org/Chapters/Finland/finland.jpg

http://www.unitedplanet.org/volunteer-in-costa-rica-long-term/images/costa-rica-ocean-view.jpg

http://www.nationalgeographic.com/adventure/0510/photos/Jpegs/NewZealand.jpg

http://www.austria-trips.com/images/Austria-Mountains.jpg

http://www.e-architect.co.uk/riga/jpgs/jurmala_latvia_hoskins_m06.jpg

http://img5.travelblog.org/Photos/61720/335583/p/f/1781.jpg

http://i40.tinypic.com/2qncqxi.jpg

http://www.bargesinfrance.com/premier-burgundy-countryside.jpg

http://farm4.static.flickr.com/3115/2352156385_c389b09b15_b.jpg

http://www.pbase.com/pj48/image/45644972/original.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

LOS ANGELES INDUSTRIAL PROPERTY SNAPSHOT – JANUARY 2010

LOS ANGELES INDUSTRIAL PROPERTY SNAPSHOT – JANUARY 2010

By Jodi Summers

2009 was an extremely disappointing year for the industrial marketplace, and 2010 is predicted to be as dissatisfying as well.

“Commercial real estate is going to hit to bottom as well,” notes Urban Land Institute researcher Charles DiRocco.

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 down 59% and the median price of sold properties is down 99%. Meantime, volume is up by almost 1/3^rd, while concluded transactions are down 50%.

The ULI 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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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

http://www.consrv.ca.gov/smgb/PublishingImages/CaliforniaStateCapitol02.jpg

http://www.blogcdn.com/www.autoblog.com/media/2006/12/the-governator—64_1280.jpg

http://www.greentechforum.net/wp-content/uploads/2007/06/california_state_flag.png

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

Sustainable Industries’ Top 10 Green Building Products of 2009

Sustainable Industries’ Top 10 Green Building Products of 2009

Edited by Jodi Summers

Not to be outdone by other trends, Sustainable Industries magazine
has made their choices for the 2009 Top 10 Green Building Products.
These industry-leading green building products winners were
selected by a panel of expert judges and the Sustainable
Industries editorial team based on their environmental
performance, scalability/market impact, innovation,design
aesthetic, value and compatibility with the U.S. Green Building 
Council’s Leadership in Energy and Environmental Design (LEED)
rating system. 

The 2009 Top 10 Green Building Product winners are:

Acadia Combined Heating and Cooling System

Made by Hallowell International

(www.gotohallowell.com)

The Acadia is not just another heating and cooling system. It maintains 200 percent efficiency even when outdoor temperatures drop well below zero..should global climate change ever affect us that severely. Acadia users can save up to 70 percent of their home heating energy costs.

ec-H20

Made by Tennant Co.

(www.tennantco.com)

Requiring no chemicals, ec-H2O uses tap water to clean most any surface of most any substance. Each machine reduces water usage by 70 to 80 percent, and the potential of 245 million gallons of water each year if it were installed in all new floor-cleaning machines.

InSpire Wall

Made by ATAS International

(www.atas.com)

This simple technology uses the power of the sun to heat outdoor air before sending it indoors, thereby slashing energy use while boosting indoor air quality. Depending on what kind of heating fuel is being replaced, this product can reduce heating costs by up to $5 for each square foot of InSpire Wall installed.

kama EEBS Structural Systems

Made by kama Energy Efficient Building Systems Inc.

(www.kama-eebs.com)

kama EEBS Structural Systems integrate light gauge metal stud framing system with expanded polystyrene insulation in a proprietary design that eliminates thermal bridging and helps to create a tight, energy-efficient building envelope.

PlybooPure Bamboo Plywood

Made by Smith & Fong Co.

(www.plyboo.com)

Because it’s technically a grass, bamboo had not previously been eligible for FSC certification. But in January 2008, after two years of lobbying, Smith & Fong achieved this first that propelled it to recognition on this year’s Top 10 list.

RainTube

Made by GLI Systems Inc.

(www.raintube.com)

This product received more Top 10 nominations than any other product this year. RainTube is a rain gutter filter made of 100 percent post-consumer high-density polyethylene – old milk jugs, in other words. This product is also Cradle to Cradle-certified, meaning that GLI Systems Inc had to develop a Post-Use Recovery Plan that goes out with every product.

Separett Villa

Made by Separett

(www.ecovita.net/villa)

This urine-diverting composting toilet – which is 100 percent PVC fee –uses no water and keeps solids separate from liquids, reducing odor and making it possible to reuse waste and urine for composting and fertilizing. The Separett Villa can be deployed where no plumbing exists, allowing for a greater reach of the technology.

Serious Windows

Made by Serious Materials

(www.seriouswindows.com)

Serious Windows are so efficient they have the potential to allow for the elimination of a building’s heating system, allowing waste heat from building appliances to serve as the main heat source in some applications. The windows have a full-frame R value of at least five and up to 11, which can cut a building’s energy bills by up to 50 percent per month.

Solatube Daylighting Systems

Made by Solatube International

(www.solatube.com)

This patented technology catches direct sunlight and redirects it down an adjustable-length tube, bringing daylight to parts of buildings that would not otherwise have access to natural light. The Vista, Calif.-based company recently launched a product specifically designed for commercial applications, making it ideal for large-roofed warehouses and manufacturing facilities, as well as retail stores and schools – allplaces that have been shown to benefit from increased daylight, as daylight is linked to higher worker productivity, decreased absenteeism and better retail sales.

Your Old Light Fixture

Made by Eleek

(www.eleekinc.com)

Eleek is the only business to make the Top 10 Green Building Products list all four years. Though not a product, Eleek’s lighting restoration service speaks to the important concept of the re-use of existing goods. When Eleek restores a light fixture, every piece of a fixture is taken apart, repaired and restored to its original splendor. Its wiring is updated to comply with modern codes and standards and a new lamp base is installed so it works with energy-efficient lamps such as CFLs and LEDs.

Original article @ http://www.sustainableindustries.com/greenbuilding/49012336.html

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 INDUSTRIAL PROPERTY SNAPSHOT – DECEMBER 2009

LOS ANGELES INDUSTRIAL PROPERTY SNAPSHOT – DECEMBER 2009

By Jodi Summers

Oh how we yearn for the next round of glory days for Los Angeles’ industrial market.

Currently, the Los Angeles County industrial vacancy rate is above 3.0 percent for the first time since the first quarter of 2004, thanks to the slowing economy.

The current economic climate has weakened demand for industrial space in all parts of Los Angeles County. The Downtown area saw its industrial vacancy rate increase by +0.7% year-to-year, Mid-Cities by +1.6%, San Fernando Valley by +0.9%, South Bay by +0.4% and the San Gabriel Valley had the largest rise in industrial vacancy, increasing by +1.8 percentage points over the third quarter of last year.

“Almost all major Southern California industries are struggling during 2009,” notes Jack Kyser, Founding Economist of the Kyser Center for Economic Research. “Worse, in some cases entire business models are changing.” One example is apparel manufacturing, where the number of potential customers for local garment producers is shrinking due to store closings, while many firms rely on CIT for financing. Another is the motion picture/TV production industry. On the TV side of the business, the audience for the broadcast networks is shrinking and cost containment is a major

concern. As to feature film production, while the box office is running at record levels, California’s incentives for the film industry were late in coming, and it’s not yet clear whether they will be sufficient to stem the continued erosion of in-state feature film production. “This is not good news for below-the-line workers or the multitude of small suppliers to the industry,” fretted Kyser.

Expect the trend to continue. International trade activity at the region’s ports and airports continues to decline. Container activity at the Los Angeles/Long Beach port complex peaked back in 2006 when 15.76 million TEUs were handled. In 2009, the forecast is for 12.2 million TEUs to be moved, and the impact of this decline has rippled out to longshoremen, truck drivers and the industrial real estate markets throughout the entire metropolitanarea.

The bright side is that neighboring Mexico’s industrial sector is seeing growth. Thanks in large part to our the cash-for-clunkers program, Mexico’s economy in the third quarter expanded for the first time since the third quarter 2008 and officially marked the end of the recession. Over 90% of Mexican exports go to the U.S. according to the National Statistics Institute, comprising about 25% of Mexican gross domestic product. The Mexican government expects nearly +3% GDP growth in 2010. Hopefully U.S. growth will follow soon.

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