2000-2001 - California State University, Northridgevcecn007/publications/SFVReport200020001cover-pg18.pdfat California State University, Northridge, I am pleased to share with you

2000-2001Report of Findings on theSan Fernando Valley Economy

College of Business and Administration & Economics

CALIFORNIA STATE UNIVERSITY

NORTHRIDGE

Economic Research CenterSan Fernando Valley

aoc: Accountants Overload

The Boeing Company

Carole and Lodwrick M. Cook

Grobstein, Horwath & Company LLP

Julie and J.D. Power, III/J.D. Power and Associates

Los Angeles Business Journal

Los Angeles Times Valley Edition

Matador’s Federal Credit Union

Robin Rousselet, The Voit Companies

Sanford P. Paris, Paris Industrial Parks

State Compensation Insurance Fund

Robert D. Voit, The Voit Companies

Private Funding plays a very significant role in making possiblethe work of the San Fernando Valley Economic ResearchCenter and in the publication of this Report. The College ofBusiness Administration and Economics extends special thanksto the Center’s generous individual and corporate sponsors:

Please see our sponsor section at the end of this Report.

For information on how you may help support the San FernandoValley Economic Research Center, please contact:

Office of Development and Alumni RelationsCollege of Business Administration and EconomicsCalifornia State University, Northridge18111 Nordhoff, Business Building 3105Northridge, California 91330(818) 677-3621(818) 677-3188 faxE-mail: [email protected]/~busdevel/

©California State University, Northridge, November 2000

San Fernando ValleyEconomic Research Center

Report of Findings on theSan Fernando Valley Economy

2000-2001

The College of Business Administration and Economics (COBAE) provideseducational opportunity to all students of promise, including those who

traditionally have had limited access to higher education. Our team of facultyand staff accepts responsibility for the proficiency of our graduates in boththe basic skills and the application of concepts needed to succeed. COBAEstrives to be a valued community partner. We develop and share pedagogyand intellectual contributions to promote life-long learning. We contribute

expertise to advance business development, and we provide assistance andknowledge toward the understanding of commerce, and of community and

organizational issues.

Table of ContentsAdvisory Board Members p2

San Fernando Valley Economic

Research Center p3

Letter from the President p4

Letter from the Dean p5

San Fernando Valley

A Summary of Changes p6

Description of the San Fernando

Valley p7

Economic Trends and Conditions

Employment and Payroll p10

Unemployment Claims p13

Bankruptcies p14

Real Estate-Commercial Property p15

Real Estate-Residential Property p22

Real Estate-Property Tax Delinquenciesand Nuisance Abatement Orders p28

Exports and Imports p30

Industry Focus

Air Transport p32

Banking p34

Entertainment p36

Health Care p38

Retail Trade p39

Tourism p41

Utilities

Water p43

Electricity p44

Social Statistics

Demographics p45

Crime p52

Migration p55

Public Assistance p56

Schools p58

Air Quality p60

Freeway Traffic p62

Government Sector

Business Tax Revenues

Collected by Los Angeles p64

Election Campaign Contributions -

Los Angeles p66

Acknowledgments p67

Appendix p69San Fernando Valley Economics Research Center

Northridge, CA 91330-8374 (818) 677-7021 Fax (818) 677-6264

Website: http://econ.csun.edu/sfvalley

College of Business Administration and Economics

Dean’s Council ofBusiness Advisors

Scott L. Beiser ‘83, MBA ‘84Houlihan Lokey Howard & Zukin

Danny Benson ‘83Deloitte & Touche

Michael Bessolo MS ‘83Walt Disney Records

Brad A. Bowlus ‘78PacifiCare Health Plan

Layne S. Brown ‘87A&A Sales

George J. Buchler ‘72Shamrock Holdings ofCalifornia, Inc.

Kenneth A. Carmona ‘80

Roberta Colmer ‘71Colmer Development Company

Ronald J. Consiglio ‘67

Curtis J. Crivelli

Eric J. Eisenberg MBA ‘84Fleet Services Corporation

Earl S. Enzer ‘83Private Client Services

Robert S. Fenton, CPA, CFP ‘71

Ronald S. Friedman ‘71Stonefield Josephson

Steven A. Fuld ‘85CLU, ChFC, AEPThe Skyline Group

Edward F. Garnett ‘72Amgen Inc.

John R. Golisch ‘72Arthur Andersen LLP

Phillip GonzalesBank of America

Michael Grillo ‘71DreamWorks SKG

Barbara G. Hiatt ‘83Market Facts

Frank J. Intiso ‘69

Gary Iskowitz ‘68, MA ‘72Gary Iskowitz & Co.

Sharona Justman ‘83Rubenstein/Justman ManagementConsultants

F. Anthony Kurtz ‘63

Teresa S. Mack ‘86Attorney

David P. Malone ‘82Community Bank

Alan F. Meyer ‘68

William Neighbors ‘83Miramar Recording

Anthony M. Palma ‘85Easton Sports, Inc.

Debra K. Papageorge ‘83Salomon Smith Barney

Sanford P. ParisParis Industrial Parks

J. David Power, IIIJ.D. Power and Associates

Andrea L. Roschke ‘84Plat, Roschke, Brown & Wall

Jeffrey A. Rosen ‘84Ernst & Young LLP

Robin Rousselet ‘79, MS ‘97The Voit Companies

Peter E. Schwab ‘68Foothill Capital Corporation

Matthew A. Smith ‘85Crosby, Heafey, Roach & May

David L. Swartz ‘66Good, Swartz & Berns

Pierre Y. Tada ‘80Limoneira Company

Ronald Thigpenn ‘80WellPoint Health Networks

Lawrence B. Varnes ‘67Grey Advertising, Inc.

Robert VoitThe Voit Companies

Sam Yellen

San Fernando Valley EconomicResearch Center Advisory Council

Lodwrick M. Cook, Honorary ChairGlobal Crossing Ltd.

Sanford P. Paris, ChairParis Industrial Parks

Wayne G. Adelstein ‘70, MA ‘71Valley Business Journal

Bruce AckermanEconomic Alliance of the San FernandoValley

Joanne B. Baltierrez ‘91League of Women Voters of LosAngeles

Roberto BarraganValley Economic DevelopmentCorporation

Charles A. BearchellCSUN, Professor Emeritus

Jeff S. Brain ‘83Valley VOTE

Stephanie CarterFinally Restoring Excellence inEducation

Richard H. CloseSherman Oaks HomeownersAssociation

Harry ColemanNorth Hills Coordinating Council

Jerome E. FarleyWestern Security Bank

Bobbi FiedlerRetired Congressperson

Ellen FitzmauriceMindWorx

David W. FlemingLatham and Watkins

Fred GainesGaines & Stacey

Richard GentilucciShamrock Holdings of California, Inc.

Terrance GreggMiniMed, Inc.

Michael J. Grobstein, CPAGrobstein, Horwath & Company LLP

Bonny L. HermanValley Industry and CommerceAssociation

Millie JonesDeputy for Michael AntonovichLos Angeles County Board ofSupervisors, Fifth District

Gerald KatellKatell Properties

Mel KohnKirsch, Kohn, Oster & Bridge

Larry KosmontKosmont Partners

Jack KyserLos Angeles County EconomicDevelopment Corporation

Robert B. LamishawJPL Zoning Services, Inc.

Harold E. Lee ‘70Van Nuys Airport Association

Steve LewUniversal Studios, Inc.

Richard LeynerUnited Chambers of Commerce

Cathy MaguireThe Gas Company

Ike MasseyThe Los Angeles Daily News

Peggy MatsudaSan Fernando Valley Business Journal

Brian PaulSouthland Regional Association ofRealtors

Walter N. PrinceExecutive-Suite Services, Inc.

Robert L. RodinePolaris Group

Brad M. Rosenheim ‘81Rosenheim & Associates

Robin Rousselet ‘79, MS ‘97The Voit Companies

Christine M. SchaefferMeissner Mfg. Co., Inc.

Scott SchafferCity Cab

Don SchultzVan Nuys Homeowners Association

Robert L. ScottScott & Associates/Civic Center

Daniel F. SelleckSelleck Development Group

Marvin R. SelterCMS Inc.

Carol SilverMetropolitan Transportation Authority

Gerald A. SilverHomeowner’s Association of Encino

Gary M. Thomas ‘83United Chambers of Commerce

Francisco J. UribeGTE California, Inc.

Julia C. WilsonLos Angeles Times Valley Edition

Ken Worthen

Report on Findings on the San Fernando Valley Economy 2000-20012

3San Fernando Valley Economic Research Center

San Fernando Valley EconomicResearch Center

The San Fernando Valley Economic Research Center collects, analyzes and reports on economic,

social and demographic data. The Center is housed in the College of Business Administration

and Economics at California State University, Northridge. Faculty and students participate

in original research.

About this Report

This 2000-2001 edition constitutes the third Report of

Findings on the San Fernando Valley Economy. On the

inside front cover of this Report, we are proud to

acknowledge the individual and corporate contributors

who have made this work possible. In addition, the

Center gratefully notes the advice and guidance provided

by its Advisory Council, listed on page 2.

The Report of Findings provides an economic picture of

the San Fernando Valley based on statistics available as

of August 30, 2000. It documents economic conditions

and trends for the Valley economy and for select

industries. It is the first step in the process of

understanding the Valley economy. Much of the

information has been acquired as a result of projects

on the San Fernando Valley undertaken by College of

Business students. Photographs of this year’s student

contributors appear at the back of this Report.

The Valley is a geographic area with no legal jurisdictional

boundaries. As such, no data exist for the Valley as an

entity. This Report extracts data pertinent to the Valley

from broader data sets. Zip codes, census tracts,

community and city names, and other means have been

used to identify Valley-specific records. Sources,

availability, and limitations of the data are outlined in

an appendix to this Report. Several sections of the

Report note other data limitations that are specific to

the data in those sections. Page constraints limit what

can be included in this report. A list of statistics included

in previous reports, but not included here, appears at

the start of the Appendix.

This year the San Fernando Valley Economic Research

Center was proud to offer six $500 scholarships to

students at Cal State Northridge. These awards, funded

by private contributors to the Center, recognize students

who have demonstrated an interest in the San Fernando

Valley community. Photographs of this year’s award

winners appear on page 68. For more information on

the scholarship program, please visit the Center’s web

site at http://econ.csun.edu/sfvalley.

If you have suggestions for the Center’s data collection

effort or if you have access to Valley data, please contact

the Center at (818) 677-7021 or by E-mail at

[email protected]. Not all of the data collected by the

Center are presented here - more detailed analyses are

available upon request. If you or your company would

like information about sponsoring the work of the Center,

or to order additional copies of this Report, contact the

CSUN College of Business Development Office at (818)

677-7021 or by E-mail at [email protected].

Shirley Svorny, Center Director and Professor of Economics


Letter from the President

s a proud new resident of the San Fernando Valley, I am delighted topresent the latest edition of the San Fernando Valley Economic ResearchCenter’s Report of Findings on the San Fernando Valley Economy.

This report has been compiled and written by faculty and students at CaliforniaState University, Northridge, the Valley’s only public university, and producedwith the assistance of leaders in the community.

The report reflects the community’s dynamic and diverse locale, which hasembraced immigrants, and new technological industries while remaining one ofthe most desirable places to live and raise a family in Los Angeles County. Itsfindings strongly affirm the Valley’s economic significance to greater Los Angelesand Southern California.

While celebrating the Valley’s vigorous growth, we should also remember itshistorical antecedents. The image of oranges growing in the sunshine broughtmillions of people west to put down roots. Although agriculture is no longer theValley’s principal industry, its residents and businesses have found other waysto harvest success and prosper.

I am pleased to call the San Fernando Valley my new home.

Sincerely,

Jolene KoesterPresident

A


Letter from the Dean

s Dean of the College of Business Administration and Economicsat California State University, Northridge, I am pleased to sharewith you the third annual Report of Findings on the San FernandoValley Economy. I expect that you will find this report as useful a

reference work as the two previous reports. This year’s report continues toreveal the complex and dynamic nature of the San Fernando Valley. Amongother new additions, this report contains a map of point sources of air pollution,expanded building permit data to include San Fernando and Calabasas, freewaytraffic statistics, and data on gang and narcotics-related crime.

The report is produced by the San Fernando Valley Economic Research Center,a research unit of the College of Business Administration and Economics. Underthe excellent direction of Professor Shirley Svorny, the Center has become aleading source of reliable, current, and objective data about the unique regionwe call the San Fernando Valley. Through the Center, faculty and studentscompile the data that have become so valuable to businesses, social serviceagencies, and governments in our region.

On behalf of the College, I should like to thank the generous sponsors whomade the production of this report possible, the members of the AdvisoryCouncil who offered the insights that focused the activities of the Center, andthe faculty and students who spent many hours ensuring the integrity of thedata.

The San Fernando Valley Economic Research Center is one of a number ofprojects, within the College of Business Administration and Economics, whichengage our faculty and students in service to our community. I thank you foryour interest and welcome your involvement in continuing to educate ourstudents for the future.

Sincerely,

William R. HosekDean

A


The San Fernando Valley – A Summary of Changes

• In 1999, the San Fernando Valley was home to

approximately 657,000 private sector jobs, with a total

annual payroll of $25.3 billion. Private sector employment

grew 3.8 percent between 1998 and 1999. During the

same period, private sector payroll grew 7 percent. The

services sector, which includes 45 percent of the private

sector jobs in the San Fernando Valley, saw its

employment grow by 4.5 percent and its payroll increase

by more than 7 percent. Wholesale trade and general

manufacturing showed the smallest gains – both holding

relatively constant in terms of employment and showing

payroll gains no greater than inflation.

• The entertainment industry continues to be a major

contributor to the economy of the San Fernando Valley.

In 1999, the industry accounted for 26 percent of the

Valley’s private sector payroll and 18 percent of its

private sector employment. With both employment and

payroll up about 10 percent from 1998, the

entertainment industry has outpaced other major

sectors.

• Several other measures also suggest a robust

economy. Commercial property vacancy rates remain

low. The apartment market is very tight. For the third

year in a row, housing prices rose. New residential

construct ion boomed in f iscal year 2000.

• Of the lagging indicators, residential notices of default,

which declined steeply in 1998, have been fairly constant

since that time. Residential foreclosures continue to

decline. Chapter 7 and 13 bankruptcies declined in the

last year, although Chapter 11 filings increased.

• Since the early 1990s, retail sales in the five smaller

Valley cities have risen, both absolutely and as a share

of total retail sales in Los Angeles County. Tourism is

up, reflected in low hotel vacancy rates and rising room

rates.

• The Valley share of Los Angeles County public

assistance recipients has generally declined since mid-

1997. During the same period, the Valley’s share of

unemployment insurance claims increased.

• Between 1990 and 1998, LA County demographers

estimate the population of the San Fernando Valley has

grown by nearly 10 percent. Over the same period, the

share of San Fernando Valley residents living in poverty

increased, from 11 to 18 percent. The Valley went from

having 13 to 14 percent of the County’s poor residents.

Estimates for 1998 suggest that forty-eight percent of

San Fernando Valley residents are white, 39 percent

Hispanic, 9 percent Asian, and 3 percent black.1 Sixty-

five percent of the students enrolled in Los Angeles

Unified School District Valley schools are identified as

Hispanic.

• There has been a dramatic improvement in measured

air quality in the San Fernando Valley over the past two

decades. By industry category, the highest level of point

source emissions in the Valley today is related to natural

gas transmission and distribution.

• In the Los Angeles portion of the Valley, a movement

is underway to detach from Los Angeles and reorganize

as a separate city. A successful petition drive has led

to substantial state financial support for a study, currently

being conducted by the Los Angeles County Local Agency

Formation Commission (LAFCO). An actual vote on the

detachment requires a determination by LAFCO that

the new city would be a financially viable entity and

that detachment would not have an adverse fiscal effect

on the remaining portion of Los Angeles. Depending on

the LAFCO findings, a vote on detachment could come

in 2002.

1 Government sources use the words Hispanic, black, Asian, and whiteto refer to populations otherwise referred to as Latino, African-American,Asian-American and Caucasian.


Description of the San Fernando Valley

The San Fernando Valley is bounded roughly by the Santa

Susana Mountains to the north and west, the Santa Monica

Mountains to the south, and the San Gabriel Mountains to

the east. It is a geographic area, not a political one, and

lacks clearly demarcated political boundaries. It lies in Los

Angeles County and includes all or portions of six cities:

Burbank, Calabasas, Glendale, Hidden Hills, Los Angeles

and San Fernando. In this report the “six-city Valley” refers

to this area. Universal City, home to Universal Studios

Hollywood, is also in the San Fernando Valley. A portion

lies within Los Angeles, and the remainder lies on

unincorporated land in Los Angeles County. Because it has

no residents, statistics for Universal City do not appear on

many of the maps in this Report.

City Population Estimate Area1-Jan-00 (Square Miles)

Burbank 106,480 17.36

Calabasas 20,455 12.93

Glendale 203,734 30.64

Hidden Hills 2,052 1.62

Los Angeles 1,295,395 223.98

(area generally north of Mulholland Drive,includes the area of Universal City within Los Angeles)

San Fernando 24,722 2.39

Universal City

within Los Angeles 0 0.19

in unincorporated LA County 0 0.46

Six-City Valley Total 1,652,838 289.38

State of California, Department of FinanceCity/County Population and Housing Estimates, 2000


The largest part of the Valley, both in area and population,

belongs to the city of Los Angeles. Throughout this Report,

we refer to this area as the “Los Angeles portion of the

Valley.” Forty-seven percent of the land and 34 percent

of the population of the city of Los Angeles are in the San

Fernando Valley. The Los Angeles portion of the Valley is

nearly 20 miles across at its widest point (from Chatsworth

to Tujunga) and 14 miles north to south (from Sylmar to

Sherman Oaks). For planning purposes, Los Angeles is

divided into 36 community plan areas. Fourteen are located

in the San Fernando Valley.

At present, 27 “named” communities make up the Los

Angeles portion of the Valley. None of these communities

are legal entities, all are part of Los Angeles. The power

to name a particular area rests with the Los Angeles City

Council. In recent years, three new areas have been

carved out and named — West Hills, Valley Village and

Valley Glen. Most of what used to be called Sepulveda is

now North Hills. The map on this page shows census tract

approximations of the named communities. These areas

are based on a map of the named communities drawn in

1993 by John Maxon (see the Appendix of this Report for

more details).

Sylmar

Mission PacoimaHills

Lake ViewTerrace

San FernandoGranada Hills

Northridge

Chatsworth

West Hills

ParkCanoga

Woodland HillsHiddenHills

Calabasas

City

North Hills

Van NuysReseda

Winnetka

TarzanaEncino Sherman

Oaks

GlenValley

ValleyVillage

Studio City

Panorama

Arleta

Universal

City

TolucaLake

NorthHollywood

BurbankGlendale

Sun Valley

SunlandTujunga

The San Fernando Valley

Cities (White) and Census Tract Approximation of

"Named" Communities in Los Angeles


For the purposes of mail delivery, there are currently

161 zip codes in the Valley (zip code boundaries

are not permanent). Of these, approximately 50

have sizable geographic footprints in the Valley.

Others are for firms, colleges, or other entities. The

accompanying map shows the community names

that have been assigned to zip code areas by the

U.S. Postal Service. Compare this to the map on

the previous page; these boundaries are not directly

aligned with the boundaries of the

communities for which they are named.

Originally comprising independent communities,

portions of the Valley were annexed to the city of

Los Angeles between 1915 and 1923 to gain access

to city water rights. The small city of San Fernando

remained independent and is now totally surrounded

by the Los Angeles portion of the Valley. (For more

history, see The San Fernando Valley, Then and

Now, written by CSUN Professor Emeritus Charles

A. Bearchell and Larry D. Fried, Windsor Publications,

Northridge, CA 1988.)

Two major airports, the Burbank Airport, which

accommodates commercial flights, and the Van

Nuys Airport, a general aviation airport, serve the

Valley. The Van Nuys airport, despite its general

aviation orientation, has the capacity to land even

the most sophisticated military aircraft.

Two principal rail lines transverse the Valley. One

lies along the Valley’s eastern border, moving goods

northwest from the Los Angeles civic center. The

second runs diagonally across the Valley, also

entering at its southeast corner, running west, and

then north across the Valley, leaving the Valley at

its northwest corner, in Chatsworth.

SanFernando

Pacoima

MissionHills Sunland

Sylmar

Chatsworth GranadaHills

Northridge NorthHills

PanoramaCity

Sun Valley

Van NuysNorthHollywood

CanogaPark Reseda

Winnetka

Calabasas

WoodlandHills Encino

TarzanaStudio

City

ShermanOaks

ValleyVillage

GlendaleBurbank

Tujunga

Mail Zip Codes - San Fernando Valley


ECONOMIC TRENDS AND CONDITIONS

Employment and Payroll

In 1999, according to California Employment Development

Department estimates, the six-city Valley (including Universal

City) was home to approximately 657,000 private sector

jobs (full-time and part-time), with a total annual payroll

of $25,343 million. Estimates of public sector employment

are not available.

EDD estimates of year-to-year gains in employment show

that employment rose 3.8 percent between 1998 and 1999.

Valley payrolls continue to rise, with a 7 percent boost from

1998 to 1999.

Los Angeles County San Fernando ValleyIndustry Employment Payroll Employment Payroll




Employment and Payroll - Change from 1998 to 1999

Agriculture, Forestry,

and Fisheries 3.5% 7.2% 16.4% 19.1%

Mining -5.9% -1.4% -25.6% -18.5%

Construction 7.6% 11.1% 6.9% 12.8%

General Manufacturing -2.0% 1.0% 0.1% 2.4%

Technology-Based

Manufacturing -4.3% -1.3% 1.6% 9.5%

Transportation,

Communications

and Utilities 4.9% 9.3% 8.1% 14.7%

Wholesale Trade 1.3% 3.8% 0.3% 2.4%

Retail Trade 2.6% 7.1% 3.6% 7.8%

Finance, Insurance,

and Real Estate 2.4% 4.0% 3.9% 2.5%

Services 2.7% 6.9% 4.5% 7.4%

Private Sector Total 1.8% 5.2% 3.8% 7.0%

Los Angeles County San Fernando Valley

Private Sector Employment - Year-to-Year ChangeLos Angeles County and the San Fernando Valley

-1%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

1995 1996 1997 1998 19991994

Private Sector Payroll - Year-to-Year ChangeLos Angeles County and the San Fernando Valley

-1%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

1994 1995 1996 1997 1998 1999


Service industry firms dominate the Valley economy both

in terms of employment and payroll. Per-worker payroll

was highest in the categories of Mining and Finance,

Insurance, and Real Estate, lowest in Retail Trade, where

many individuals work part-time. Valley employment by

industry sector is very similar to that for Los Angeles County

as a whole. Compared to Los Angeles County, the Valley

is stronger in Services, weaker in General Manufacturing

and Transportation, Communications and Utilities.

The table that follows includes employment and payroll

statistics for primary and secondary industry categories.

Industry categories are based on Standard Industrial

Classification (SIC) codes.

Annual Payroll by Industry - 1999Six-City Valley and Universal City

Wholesale Trade

Transportation,Communication

and Utilities

Technology-BasedManufacturing

Services

Retail Trade

Mining

GeneralManufacturing

Finance, Insurance,and Real Estate

Construction

Agriculture

$0 $20 $40 $60 $80 $100 $120 $140

Billions$0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000

Average Payroll

Per Worker Payroll by Industry - 1999Six-City Valley and Universal City

Wholesale Trade


and Utilities


Services

Retail Trade

Mining



Construction

Agriculture,Forestry, and

Fisheries

Private Sector Employment 1999Six-City Valley (and Universal City)

Other0.91%

Construction4.49%

General Manufacturing7.17%


7.79%


and Utilities3.79%

Wholesale Trade5.68%

Retail Trade17.30%

Finance, Insurance, andReal Estate

7.70%

Services45.17%

Private Sector Employment 1999Los Angeles County

Construction3.62%

General Manufacturing10.72%


7.69%


and Utilities6.63%

Wholesale Trade7.80%

Retail Trade17.81%


6.68%

Services38.33%

Other0.71%

San Fernando Valley Share ofLos Angeles County Employment - 1999

0% 5% 10% 15% 20% 25%

Wholesale Trade


and Utilities


Services

Retail Trade

Mining



Construction

Agriculture,Forestry, and

Fisheries

Total


Private Sector Employment and Payroll by Industry, 1999

Six-City Valley (and Universal City)

Employment Annual Payroll (in $ Millions)

Agriculture 5,720 $ 134

Mining 216 $ 11

Construction 29,525 $ 1,037

Building Construction 7,470 $ 291

Heavy Construction other than Building 954 $ 46

Special Trade Contractors 21,102 $ 699

General Manufacturing 47,098 $ 1,617

Food & Kindred Products 7,368 $ 400

Apparel & Other Products made From Fabrics 8,831 $ 18

Lumber & Wood Products, Rx Furniture 2,153 $ 51

Furniture & Fixtures 1,743 $ 53

Printing, Publishing & Allied Industries 7,101 $ 285

Chemicals & Allied Products 5,544 $ 218

Rubber & Miscellaneous Plastic Products 3,132 $ 92

Leather & Leather Products 1,061 $ 20

Stone, Clay, Glass & Concrete Products 2,240 $ 69

Primary Metal Industries 1,484 $ 50

Technology-Based Manufacturing 51,217 $ 2,453

Fabricated Metal Products 8,469 $ 316

Machinery, Except Electrical 9,157 $ 416

Electrical & Electronic Machinery & Equipment 11,726 $ 505

Transportation Equipment 12,464 $ 644

Instruments & Related Products 9,401 $ 571

Transportation and Public Utilities 24,914 $ 988

Local & Interurban Passenger Transit 2,303 $ 41

Trucking & Warehousing 6,037 $ 161

Transportation by Air 5,367 $ 195

Transportation Services 1,743 $ 60

Communication 7,702 $ 446

Wholesale Trade 37,334 $ 1,535

Durable Goods 24,593 $ 1,046

Non-durable Goods 12,741 $ 489

Retail Trade 113,699 $ 2,394

Building Materials & Garden Supplies 4,147 $ 107

General Merchandise Stores 13,588 $ 258

Food Stores 14,697 $ 336

Automotive Dealers & Service Stations 10,909 $ 408

Apparel and Accessory Stores 6,802 $ 116

Furniture & Home Furnishings Stores 7,843 $ 235

Eating & Drinking Places 39,255 $ 556

Finance, Insurance and Real Estate 50,633 $ 2,565

Banking 7,928 $ 341

Credit Agencies other than Banks 4,392 $ 251

Security, Commodity Brokers and Services 2,039 $ 181

Insurance Carriers 17,581 $ 1,016

Insurance Agents, Brokers and Services 7,365 $ 360

Real Estate 10,008 $ 342

Services 296,934 $ 12,607

Hotels & Other Lodging Places 3,890 $ 80

Personal Services 7,396 $ 162

Business Services 60,449 $ 1,798

Auto Repair, Services & Garage 8,255 $ 187

Motion Pictures 98,663 $ 5,538

Amusement & Recreation Services 9,319 $ 603

Health Services 54,517 $ 1,963

Legal Services 5,449 $ 303

Educational Services 7,695 $ 228

Social Services 9,375 $ 186

Membership Organizations 3,814 $ 96

Engineering, Accounting, Research & Management Services 22,171 $ 1,207

Other Private 16 $ 1

TOTAL PRIVATE SECTOR 657,307 $ 25,343Note: Subcategories are not a complete list, but highlight major sectors.


Unemployment Claims

Unemployment claims, tallied by the California Employment

Development Department, provide the best real-time

measure of trends in unemployment among residents of

the six-city Valley. Unlike traditional, commonly published

unemployment statistics (which are unavailable for areas

like the Valley), these numbers do not include individuals

who have recently entered the labor force, who are searching

for employment, but have yet to find it. Nor do these

numbers include individuals who experience prolonged

unemployment and have exhausted their claim to

unemployment insurance. Prior to January 1994, statistics

were collected twice a year. Since then, they have been

reported monthly. This change in sample frequency explains

the irregular nature of the data presentation in the

accompanying graphs.

Unemployment claims track the business cycle very closely.

Unemployment claims rose with the recession in the early

1990s (claim periods were extended during the height of

the recession, causing the dramatic increase in the number

of claimants) and declined substantially until, by January

of 1995, claims were back to pre-recession levels. The

series shows a slight decline in the Valley, but an increase

in the Valley’s share of the County’s unemployed since

1997. This, despite estimates by the State of California

Department of Finance that the Valley share of the County

population declined during that period. Valley claims show

seasonal dips during the fall and winter months.

Share of Unemployment Claims in L.A. CountySix-City Valley

14

16

18

20

22

24

% o

f U

nem

plo

ym

en

t C

laim

s

2000

1990

1998

1997

1996

1995

1994

1993

1992

1991

1990

1989

1988

1987

Share of Unemployment Claims in CaliforniaSix-City Valley

0

1

2

3

4

5

6

% o

f U

nem

plo

ym

en

t C

laim

s

2000

1990

1998

1997

1996

1995

1994

1993

1992

1991

1990

1989

1988

1987

2000

1990

1998

1997

1996

1995

1994

1993

1992

1991

1990

1989

1988

1987

Unemployment Insurance ClaimsSix-City Valley

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

Nu

mb

er

of

Cla

ims

2000

1990

1998

1997

1996

1995

1994

1993

1992

1991

1990

1989

1988

1987


Bankruptcies

Bankruptcy data allow an assessment of financial solvency

among Valley businesses and residents. The Valley area as

defined by the U.S. Bankruptcy Court is much larger

geographically than the definition of the Valley used

elsewhere in this Report. It includes areas to the west and

north of the six-city Valley, including Santa Clarita, Thousand

Oaks and Simi Valley.

Chapter 11 filings allow corporations, partnerships and

individuals to reorganize without having to liquidate all of

their assets. The requisite fees and required legal assistance

make Chapter 11 filings an alternative only for sizeable

businesses and for extremely wealthy individuals. Because

there are so few Chapter 11 filings, an increase, as in the

past year, does not necessarily imply that economic

conditions have taken a turn for the worse.

Chapter 7 and Chapter 13 bankruptcies are for small

businesses and individuals. During the past year, the number

of bankruptcies in both of these categories declined. The

Valley share of Chapter 13 bankruptcies in Los Angeles

County, which had been running high over the last 4 years,

has fallen, suggesting a relative improvement in the

economic position of Valley households.

Bankruptcy Filings - Chapters 7 and 13

0

200

400

600

800

1,000

1,200

1,400

1994 1995 1996 1997 1998 1999 2000

Nu

mb

er

of

Ban

kru

ptc

y F

ilin

gs

Ch. 13Ch. 7

Bankruptcy Filings - Chapter 11

0

10

20

30

40

50

60

1994 1995 1996 1997 1998 1999 2000

Nu

mb

er

of

Ban

kru

ptc

y F

ilin

gs

Bankruptcy FilingsValley Share of LA County

8%

10%

12%

14%

16%

18%

20%

1994 1995 1996 1997 1998 1999 2000

Chpt 7 Chpt 13


Real Estate - Commercial Property

Industrial Property

Data from Grubb & Ellis for the six-city Valley (excluding

Calabasas) suggest that industrial vacancy rates remain

low. The overall vacancy rate for Valley industrial property

is near 4 percent. The highest vacancy rates are in the

Central Valley area; the lowest rates are in the East Valley.

Grubb & Ellis Industrial Regions

• East Valley: Arleta, Burbank, Glendale, Lakeview Terrace,

Pacoima, San Fernando, Studio City, Sun Valley, Sunland,

Sylmar, Tujunga

• Central Valley: North Hollywood, Panorama City, Reseda,

North Hills, Studio City, Tarzana, Van Nuys

• West Valley: Canoga Park, Chatsworth, Granada Hills,

Northridge, Woodland Hills

Industrial Vacancy RateWest Valley

0%

2%

4%

6%

8%

10%

12%

1Q1996

3Q 1Q1997

3Q 1Q1998

3Q 1Q1999

3Q 1Q2000

Industrial Vacancy RateCentral Valley

0%

2%

4%

6%

8%

10%

12%

1Q

19963Q 1Q

19973Q 1Q

19983Q 1Q

19993Q 1Q

2000

Industrial Vacancy RateSix-City Valley (excluding Calabasas)

0%

2%

4%

6%

8%

10%

12%

1Q

19963Q 1Q

19973Q 1Q

19983Q 1Q

19993Q 1Q

2000

Industrial Vacancy RateEast Valley

0%

2%

4%

6%

8%

10%

12%

1Q1996

3Q 1Q1997

3Q 1Q1998

3Q 1Q1999

3Q 1Q2000


The accompanying map, using CB/Richard Ellis data, shows the location of industrial buildings

(generally larger than 5,000 square feet) in the Valley.

Industrial Properties(Excluding Calabasas) Double Line Shows Railroad Track

Industrial Building Size- Square Feet

10000 - 40,00040,001 - 100,000100,001 - 250,000250,001 - 700,000700,001 - 2,200,000

Rinaldi St.

Sherman Way

Ventura Blvd.

Mulholland Drive

To

pan

ga C

an

yo

n B

lvd

.

Van

Nu

ys

Blv

d.

Olive

Ave.

Vin

ela

nd

Ave.

Lau

rel C

an

yo

n B

lvd

.

Glenoaks Blvd.

Rese

da B

lvd

.

Balb

oa B

lvd

.

Sep

ulv

ed

a B

lvd

.


Office Buildings

In relatively new, prestigious, Class A office buildings, we

see a leveling off of rental rates, which had been rising,

and fairly stable vacancy rates over the last several years

(at 12 percent). This data is provided by Cushman &

Wakefield for the San Fernando Valley (excluding Calabasas,

including Universal City). Also provided by Cushman &

Wakefield are office building net absorption rates for the

entire market (not just Class A buildings); 1999 saw a net

increase in occupied office rental space of nearly 400,000

square feet. The loss of occupied office space following the

1994 Northridge earthquake has been more than offset by

expanded occupancy in recent years.

Office Building Net AbsorptionSix-City Valley (excluding Calabasas, including Universal City)

(600,000)

(400,000)

(200,000)

0

200,000

400,000

600,000

800,000

1991 1992 1993 1994 1995 1996 1997 1998 1999 2Q2000

Sq

uare

Feet

Class A Office Building Vacancy and Rental Rates Six-City Valley (excluding Calabasas, including Universal City)

0%

4%

8%

12%

16%

20%

1991 1992 1993 1994 1995 1996 1997 1998 1999 2Q2000

$1.50

$1.60

$1.70

$1.80

$1.90

$2.00

$2.10

% D

irect

Vaca

ncy

Rate

Ren

tal R

ate

($ p

er sq

.ft/m

on

th

Direct Vacancy Rate

Rental Rate(per Sq. Ft.per Month)

Data from Grubb & Ellis show office vacancy rates across the Valley (for all buildings

tracked, not just Class A) moving toward convergence, near 10 percent. Vacancy rates

in the East Valley market have risen and rates in the West Valley have declined.

Grubb & Ellis Office Regions

• East Valley: Burbank, North Hollywood, Studio City,

Universal City

• Central Valley: Encino, Granada Hills, Mission Hills,

Northridge, Sherman Oaks, Van Nuys

• West Valley: Calabasas, Canoga Park, Chatsworth, Tarzana,

Woodland Hills

The accompanying map shows office buildings (generally

larger than 20,000 square feet) in the Valley, based on the

records of Grubb & Ellis.

Office Vacancy RateWest Valley

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

1Q

19963Q 1Q

19973Q 1Q

19983Q 1Q

19993Q 1Q

2000


Office Vacancy RateCentral Valley

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

1Q

19963Q 1Q

19973Q 1Q

19983Q 1Q

19993Q 1Q

2000

Office Buildings

Rinaldi St.

Sherman Way

Ventura Blvd.

Mulholland Drive

Glenoaks

Olive

Ave.

Rese

da B

lvd

.

Vin

ela

nd

Ave.

Lau

rel C

an

yo

n B

lvd

.

Van

Nu

ys

Blv

d.

Sep

ulv

ed

a B

lvd

.

Balb

oa B

lvd

.

To

pan

ga C

an

yo

n B

lvd

.

Office Building Size -Square Feet

16,000 - 60,000

60,001 - 120,000

120,001 - 225,000

225,001 - 400,000

400,001 - 750,000

Office Vacancy RateEast Valley

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

1Q

19963Q 1Q

19973Q 1Q

19983Q 1Q

19993Q 1Q

2000

Documents

2000-2001 - California State University, Northridgevcecn007/publications/SFVReport200020001cover-pg18.pdfat California State University, Northridge, I am pleased to share with you