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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
Report on Findings on the San Fernando Valley Economy 2000-20014
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
5San Fernando Valley Economic Research Center
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
Report on Findings on the San Fernando Valley Economy 2000-20016
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.
7San Fernando Valley Economic Research Center
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
Report on Findings on the San Fernando Valley Economy 2000-20018
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
9San Fernando Valley Economic Research Center
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
Report on Findings on the San Fernando Valley Economy 2000-200110
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
Los Angeles County San Fernando ValleyIndustry Employment Payroll Employment Payroll
Los Angeles County San Fernando ValleyIndustry Employment Payroll Employment Payroll
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
11San Fernando Valley Economic Research Center
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
Transportation,Communication
and Utilities
Technology-BasedManufacturing
Services
Retail Trade
Mining
GeneralManufacturing
Finance, Insurance,and Real Estate
Construction
Agriculture,Forestry, and
Fisheries
Private Sector Employment 1999Six-City Valley (and Universal City)
Other0.91%
Construction4.49%
General Manufacturing7.17%
Technology-BasedManufacturing
7.79%
Transportation,Communication
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%
Technology-BasedManufacturing
7.69%
Transportation,Communication
and Utilities6.63%
Wholesale Trade7.80%
Retail Trade17.81%
Finance, Insurance,and Real Estate
6.68%
Services38.33%
Other0.71%
San Fernando Valley Share ofLos Angeles County Employment - 1999
0% 5% 10% 15% 20% 25%
Wholesale Trade
Transportation,Communication
and Utilities
Technology-BasedManufacturing
Services
Retail Trade
Mining
GeneralManufacturing
Finance, Insurance,and Real Estate
Construction
Agriculture,Forestry, and
Fisheries
Total
Report on Findings on the San Fernando Valley Economy 2000-200112
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.
13San Fernando Valley Economic Research Center
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
Report on Findings on the San Fernando Valley Economy 2000-200114
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
15San Fernando Valley Economic Research Center
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
Report on Findings on the San Fernando Valley Economy 2000-200116
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
.
17San Fernando Valley Economic Research Center
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
Report on Findings on the San Fernando Valley Economy 2000-200118
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