New leases, however, are still being signed in professional business services, logistics and warehousing, and entertainment industries despite labor turmoil
Los Angeles—The Los Angeles County Economic Development Corporation (LAEDC) has just released the annual survey of major business expansions in the Los Angeles five-county area. In 2008, there were 176 major expansions in the region, down by 13.7 percent from the 203 reported for 2007. This is not unexpected news, as activity has been declining since 2004 when there were 348 major expansions in Southern California.
The LAEDC defines a “major business expansion” as a new lease (or expansion of an existing lease) of at least $1 million in value or of 20,000 square feet or more. A useful rule of thumb is that for every major expansion, there are at least three smaller ones not tracked in the LAEDC’s survey.
In Los Angeles County, the number of major expansions in 2008 decreased only slightly from 100 projects in 2007 to 98 projects in 2008. In nearby Orange County, major project counts dropped by 19 to a total of 43 projects in 2008. Despite its economic problems, the Riverside-San Bernardino area’s major project count remained stable over the year with 27 major expansions in 2008. However, Ventura County saw a marked decline from 14 projects in 2007 to eight in 2008.
For the full story and study results visit:http://tinyurl.com/cgczpe