Non Residential Activity Mixed in May

Office construction was well behind, by a stout56.2%. However, retail development is picking up, with the 5-month total12.6% ahead of last year. Imagine, more places to buy the same old stuff! Industrial activity in Orange County was running 65.1% behind last year,but new office activity was up 91.0% so far, while retail was ahead 64.0%. Things remain hot in the Riverside-San Bernardino area. Industrialpermit valuations through May were up 32.0% despite the large base. Officevaluations were up 63.0%, but on a small base, while retail activity was up81.3% on a large base. In San Diego County, industrial constructionlagged, down 16.8%, but office and retail were running ahead of the 1999pace, by 69.4% and 119.6%, respectively. In Ventura County, industrialpermit valuations were up 58.7%, and office was ahead 201.4% (small base),but retail continues to lag, off 84.3% from 1999. In the San Francisco Bay Region, the 5 month value of industrialpermits was up 15.7%, thanks to a surge in Alameda County. Office permitvaluations were up 212.9%, with the hot spots being San Francisco and SantaClara Counties. However, retail activity lagged, down 21.0% from last year. And a quick note on vacancy rates. Grubb & Ellis reports that in thefirst quarter of 2000 office vacancy rates were 12.7% in Los AngelesCounty, 9.5% in Orange County, 16.6% in Riverside-San Bernardino, 7.2% inSan Diego County, and 7.7% in Ventura County. Industrial vacancy rateswere 4.1% in Los Angeles County (with the central area at 2.1%), 7.7% inOrange County, 7.8% in Riverside-San Bernardino (its ability to soak upspace is awesome), 9.1% in San Diego and 7.0% in Ventura County. (Jack Kyser)

Thanks to Chris Steins