Economic Snapshot May 2011 a publication of the Economic Development Corporation

WHAT’S INSIDE COMMERCIAL REAL ESTATE Commercial Real Estate 1 New Permits Residential Real Estate 2 • No new permits for commercial space were issued in May 2011 by the City of Employment 3 Santa Clarita, down from one new permit issued in April 2011, but the same as May 2010. Enterprise Zone 3 Tenant Improvements/Alterations Tourism 4 • A total of 7 building permits for tenant improvements were issued in May 2011, Film 4 down 53% from the 15 permits in April 2011 and down 13% from the 8 permits in Sales Tax 5 May 2010. • In May 2011, a total of 29 permits for commercial alterations were issued, up 4% from the 28 permits in April 2011, yet down 28% from the 39 commercial Santa Clarita Valley (includes City) alterations in May 2010. Square Footage Vacancy - Q2 2011 Certificates of Occupancy • In May 2011, a total of 11 Certificates of Occupancy were issued, of which five were for retail, four were for o!ce and two was for industrial space. This compares to three Certificates of Occupancy issued in May 2010. 29% 31% • The Certificates of Occupancy issued in May 2011 represent a total of 46,791 (907,162) (972,760) square feet, of which 46% was for o!ce, 34% was for industrial and the remaining 20% was for retail. This represents a significant increase from the 6,548 square feet covered in Certificate of Occupancies issued in May 2010. 39% Vacancy Rates In the entire Santa Clarita Valley (including the City) o!ce, retail and industrial (1,226,487) • vacancy rates decreased in Second Quarter Quarter 2011 from the previous quarter. City of Santa Clarita • The Santa Clarita Valley’s o!ce vacancy rate was 19.3% and retail and industrial Square Footage Vacancy - Q2 2011 vacancy rates were 7.3% an 5.7%, respectively. • During Second Quarter 2011, the City’s o!ce vacancy rate was 17.7% and retail and industrial vacancy rates were 6.8% and 5.4%, respectively.

Santa Clarita Valley Vacancy Rates 30% 34% (699,680) (789,041) 25% 19.7% 20% 20.1% 20% 19.3%

36% 12.5%7.7% 7.7% 7.3% 7.6% 7.3% (837,984)

5.7% 6.7% 6.2% 6.2% 5.7% 0% O!ce Industrial Retail Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011

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+ + + RESIDENTIAL REAL ESTATE ACTIVITY City of Santa Clarita New Permit Activity • One new single-family residential permits was issued in May 2011 by the City of Santa Clarita, compared to 29 permits issued in May 2010. City of Santa Clarita Tenant Improvement/Alteration Activity • A total of 74 building permits for additions and alterations were issued in May 2011, up 95% from permits issued in May 2010. Santa Clarita Valley Home Values & Sales • In the Santa Clarita Valley (including the City of Santa Clarita), single-family sales volume and values regained ground lost from the beginning of the year. • Single-family median home values increased 1% to $379,000 in May 2011 from $375,000 in April 2011, still lagging the $410,000 median home value seen in May 2010. • A total of 173 single family homes were sold in May 2011, 5% fewer than in April 2011 and 20% fewer than May 2010. • Condominium values decreased 4% to $225,000 in May 2011 from April 2011, down 6% from $240,000 in May 2010. • Condominium sales rose nearly 20% to 79 sales in May 2011 from April 2011, but were down 13% sales in May 2010. City of Santa Clarita Home Values & Sales • In the City of Santa Clarita, single-family home values and sales volume are nearing those seen in Spring 2010. • Single-family average home values in May 2011 were $419,700 or 4% above April 2011, yet 7% below May 2010. • A total of 140 single family homes were sold in May 2011, down 8% from April 2011 and 14% below May 2010. • Condominium prices slipped 6% to $233,600 in May 2011 from April 2011, but are essentially flat from one year ago. • Condominium sales volume rose 26% to 72 units in May 2011 from April 2011, but were down 14% from sales in May 2010.

APARTMENTS February 2011 SCV Residential Real Estate Summary Vacancies and Rents MAY 2011 MAY 2010 % Chg. • The Apartment vacancy rate during Q1 Median Home Value $379,000 $410,000 -7% 2011 in Santa Clarita was 7.0%, which # of Single Family Homes Sold 173 215 -20% is lower than the Q4 rate of 7.5% and the Q1 2010 rate of 8.8%. Median Condominium Value $225,000 $240,000 -6% • Despite the downward trend, vacancy # of Condominiums Sold 79 91 -13% rates for Q4 2010 in Santa Clarita Avg. Days on Market (Single-Family) (City) 66 52 27% continue to exceed those in comparable L.A. Metro communities for the fourth Single-Family Home Inventory (City) 577 526 10% consecutive quarter. Apt. Vacancy Rate (Q1 2011 v. 2010) 7.0% 8.8% -20%

• Average apartment rents in Santa Avg. Apt. Rents (Q1 2011 v. 2010) $1,435 $1,429 0.4% Clarita remain steady at $1,435. NODs recorded 102 102 -

UNEMPLOYMENT RATE Unemployment Rate Comparison - May 2011 • The City of Santa Clarita’s unemployment rate was Santa Clarita 7.3% 7.3% in May 2011 compared to 11.9% for Los Angeles Pasadena 9.0% County and 11.4% for California. • Unemployment in Santa Clarita continues to remain Palmdale 14.7% low, currently sitting just a few tenths of a percent Los Angeles 13% under the 7.5% rate one year ago. Lancaster 16.6% • The SCVEDC continues to work with the City of Santa Clarita, and the Santa Clarita Glendale 10.4% WorkSource Center to attract jobs, create hiring L.A. County 11.9% opportunities and provide training programs for the CA State 11.4% region. For more information on the available programs contact or the SCVEDC at (661) 288-4400. 0 4.25 8.5 12.75 17

SANTA CLARITA VALLEY Economic Snapshot May 2011 Page 2 EMPLOYMENT | Santa Clarita Valley† Employment By Industry | Q2 Construction • In the second quarter of 2010 there were a total of 5,870 Government 6% establishments reporting employment and wages, up 1% 12% from from the 5,787 in second quarter of 2009. Manufacturing Other Svcs 13% • Total employment in the Santa Clarita area was down 5% to 4% 70,088 jobs in the second quarter of 2010 from the same period in 2009. Leisure & Hospitality 15% • Employment fell during second quarter 2010 from the Trade, Trans. & Utilities previous year in every sector except information and 19% nonclassified, which rose 8% and 10% respectively. Ed. & Health Srvcs Info • Quarter wages in the Santa Clarita area were down 6% to 10% 2% $667 million in second quarter of 2010 from $710.26 million in second quarter 2009. Financial Activities 5% Prof. & Bus. Services Total Number Of Area Jobs And Payroll 14% Share of Businesses By Industry | Q2 2010 800 $794.17 Government Construction 2% 9% Nonclassified 730.47 736.26 5% Manufacturing 711.60 717.21 700.88 5% $714.11 $710.26 Other Svcs 700 $696.83 23% Trade, Trans. & Utilities 658.43 15% $667.00 Info $629.69 Leisure & Hospitality 2% 8% 600 Financial Activities Q1 2009 Q2 Q3 Q4 Q1 2010 Q2 Ed. & Health Srvcs 8% 9% Quarter Payroll (in millions) Prof. & Bus. Services Quarterly Average Employment (x100) 14%

For more information on the Santa Clarita Valley Enterprise Zone, visit www.scvedc.com/enterprise_zone

Job Created or Retained by Fiscal Year Tax Savings for Local Businesses by Fiscal Year 3,810 $142.65M in 2000 $70 total jobs Tax Savings $72.52M in $9.06M in May 1,937 (154 in May) Tax Savings 1500 total jobs 64,359,360 1,719 $47 49,608,000 1,325 1000 612 $22.91M in total jobs $23 Tax Savings 500 152 $5.69M in 460 17,222,400 total jobs Tax Savings 152 5,690,880 0 $0 FY 07-08 FY 08-09 FY 09-10 FY 10-11 FY 07-08 FY 08-09 FY 09-10 FY 10-11

SANTA CLARITA VALLEY Economic Snapshot May 2011 Page 3 TOURISM | Santa Clarita Valley • PKF Consulting reported hotel occupancy in Santa Clarita was 77% May 2011 Southern California Occupancy & Rate Summary in May 2011, higher than the reported occupancy of 67% in May 2010. In comparison, occupancy rates at OCCUPANCY OCCUPANCY • ADR MAY ADR MAY TOURISM SUBREGION RATE RATE hotels in Los Angeles County were at 2011 2010 75%, up 4% from May 2010. MAY 2011 MAY 2010 • The year-over-year increase in occupancy rate in Santa Clarita was Santa Clarita 76.52% 66.52% $99.37 $104.90 the second-highest in the region San Fernando Valley 71.82% 67.39% $125.59 $122.99 behind Long Beach. Pasadena 77.19% 70.04% $143.96 $137.75 • Local average daily room rates (ADR) decreased 5% in May 2011 to $99.37 Long Beach 73.11% 63.09% $131.30 $121.26 from the previous year. San Gabriel Valley 68.19% 64.66% $95.32 $93.53 • The region’s ADR increased 6% to $147.31 in May 2011 from the previous Los Angeles Region 76.52% 66.52% $147.31 $139.46 May.

FILM | City of Santa Clarita

• In May 2011 a total of 20 film permits were issued within the City Number of Permits Issued of Santa Clarita, up 5% from May 2010. 400 • Year to date, 145 film permits have been issued in 2011, up 12% from the same period in 2010. 300 • The 20 permits represent a total of 66 filming days in February 319 2011, up 25% from 53 filming days in May 2010. • May 2011 film days included: 50% for television shows, 26% for 200 student/other projects, 11% for commercials, 6% for music video MAY: 20 100 production, 4% for stills and 3% for features. 145 • The estimated economic impact from location filming for May 2011 of $1,255,500 was 5% above the $1,194,000 in May 2010. 0 • Despite the May 2011 increase over previous year, the year-to- 2010 2011 date economic impact, is down 20% to $6,525,000 versus $8,205,000 in 2010. Number of Film Days by Type of Filming Estimated Economic Impact of Filming TV 6% Student/Other 4% $18,136,000 Commercials $20,000,000 Features 3% Stills 11% $15,000,000 Music Video $10,000,000 50% $6,525,000 $5,000,000 26% MAY: $1,255,500 $0 2010 2011

SANTA CLARITA VALLEY Economic Snapshot May 2011 Page 4 BOARD OF DIRECTORS Executive Committee SALES TAX | City of Santa Clarita† Bill Kennedy – Co-Chairman Wingspan Business Consulting • Sales tax generated in Fourth Quarter 2010 was above that generated in during Fourth Quarter 2009. Don Fleming – Co-Chairman Valencia Acura • Total Fourth Quarter Sales Tax revenue was $6.77 million, up 7.6% from the $6.29 million generated in Fourth Quarter 2009. Calvin Hedman – CFO Hedman Partners • The sales tax revenue figures presented are adjusted for economic data, by removing retroactive payments of $5,000 or more into the quarter the sale Dr. Dianne Van Hook – Secretary College of the Canyons was generated.

John Sha!ery Poole & Sha!ery, LLP 2010 $5.61 $6.09 $5.96 $6.77 $24.43M Larry Rasmussen Spirit Holding, Inc.

Ken Pulskamp $5.36 $23.37M City of Santa Clarita 2009 $5.81 $5.91 $6.29

Rosalind Wayman Supervisor Michael D. Antonovich $0 $10.00 $20.00 $30.00

William Sloan Dollars in Millions California United Bank Jan-Mar Apr-Jun Jul-Sept Oct-Dec Morris Thomas The Signal

Greg McWilliams Newhall Land REFERENCES The Santa Clarita Valley Monthly Economic Snapshot is a publication of the Santa Roger Seaver Henry Mayo Newhall Memorial Hospital Clarita Valley Economic Development Corporation, using information provided by the following sources: Tim Burkhart • City of Santa Clarita, Building & Safety Division Southland Association of Realtors $5.61 $6.67 $19.06M Arthur Sohikian • AVS Consulting • First American RealQuest Pro • Reis, Inc. Board Members • City of Santa Clarita, Film & Tourism $5.36O!ce $24.61M Kerry Carmody PKF Consulting

SANTA CLARITA VALLEY ECONOMIC DEVELOPMENT CORPORATION • Providence Health & Services • California Board of Equalization Data from City of Santa Clarita, Finance Division Laurel Shockley • CoStar Dollars in Millions Southern California Edison Updated Quarterly • City of Santa Clarita, Economic Development Division Casey Kirkman • CA Employment Development Department AQMS Mayflower • Bureau of Labor Statistics Adam Gilbert †Updated quarterly. The next update will in the June Economic Snapshot to be Disney Corporate Real Estate released August 2011. Matt Reeser Century 21 Real Estate ECONOMIC DEVELOPMENT NEWS from scvedc.org Chris Chase • Santa Clarita Film O!ce Celebrates Prosperous Year KHTS 1220 AM Triple C Electric Inc. • LAEDC Released Mid-Year Review THE SIGNAL Rick Robb • ACT Litigation Acquired for $65 Million MONEYWATCH Valencia Travel Village Thomas Dudley Liberty Building Maintenance & Services SCVEDC NEWSLETTER To join our bi-weekly “Economic Update” e-newsletter mailing list, email Michael Gibralter Valencia Country Club [email protected] or call (661) 288-4400.

Joe Messina Wildcat Business Group

Ken Wiseman AMS Fulfillment Mark Delmarter Klassen Corporation scvedc.org | (661) 288-4400