Posts Tagged ‘California’

Inland Empire Poised for Industrial Comeback

Wednesday, July 22nd, 2009

Over the past decade, California’s Inland Empire has been transformed from a little-known region with affordable housing and lots of inexpensive land into an industrial hub - thanks to its proximity to the busy Ports of Los Angeles and Long Beach.  With the City of Ontario embarking on The Ontario Plan, sciearmalogo2city fathers are laying the groundwork for increased investment over the next 30 to 40 years.  The plan’s goal is to create an all-inclusive community where people and businesses will want to be.

According to Mary Jane Olhasso, economic development director for the City of Ontario, “Although firms are pulling back, they still realize that the region has competitive advantages over our coastal neighbors.  In Ontario, both industrial and office lease rates are lower than Los Angeles and Orange County.”

The Inland Empire’s industrial market is in a prime position to recover when the economy improves because the region is notable for its relatively low-cost housing, large workforce and vital location relative to international shipping.  With 40 percent of all containerized cargo entering the United States through Southern California ports, the Inland Empire is the logical location for gigantic distribution centers to handle the freight prior to shipping it throughout the United States.

Larry Armstrong: Architecture During a Recession

Monday, June 29th, 2009

The best way to survive a recession is to have a strategic plan firmly in place when the inevitable downturn happens.  That’s the opinion of Larry Armstrong, President of Ware Malcomb, an Irvine, CA-based international architectural firm with ongoing projects in the United States, Latin America, Asia and Europe.

architect_istock5775134In a recent interview for the Alter NOW Podcasts, Armstrong says “There is no question that we learned everything about saving a business and building a business during the 1990s downturn.”  In fact, Armstrong’s firm wrote a recession plan several years ago and determined exactly how they would react.  “You have to look at what revenue can support what level of staff and all the additional expenses and costs which, over time, become discretionary.  You have to look at those and decide what is necessary and what isn’t,” according to Armstrong.

The current environment does not support ego-driven, icon architecture.  Rather, there is a move towards thrift, because corporate users want to be seen as economical and functional — not as extravagant.  The recession also has impacted Corporate America’s attitude towards green design and LEED-certified buildings.  According to Armstrong, “We’re seeing a bit of a retreat - not major - and a vast majority of our projects are still LEED certified”.  Still, if the project is industrial, Armstrong is not hearing a desire for LEED certification anymore.

To listen to Larry Armstrong’s full interview on architecture during a recession, click here for the podcast.

 
icon for podpress  Larry Armstrong on Architecture in a Recession: Play Now | Play in Popup | Download

No Port in the Global Fiscal Storm

Wednesday, April 22nd, 2009

Shipping activity has plunged as much as one-third at U.S. ports most heavily invested in the once red-hot but now declining Asia trade. 

Freight rates from South China to Europe have slid as much as 42 percent from some ports since November, leading shipping industry authority Drewry Container Freight Rate Insight Report to speculate that this once-robust market is in freefall.titanic-sinking-7790481

As freight rates fall to record lows shipping companies are playing hardball to remain competitive, even though relatively little product is being shipped these days.  According to Drewry, container lines could see a $68 billion plunge in global revenues this year, compared with 2008 revenues of $220 billion.  Drewry notes that global all-in freight rates fell to $1,681 per 40-foot box, down from $2,098 in November.  That’s a steep $400 drop per feu (forty-foot equivalent unit) or 20 percent in just two months.

The ports of Los Angeles and Long Beach are slashing cargo rates to retain old customers and attract whatever new business they can.  Spanning 10,000 acres, these vast ports typically handle $357 billion in goods every year.  The ripple effect of this year’s overall 18.1 percent downturn is evident in California’s vital Inland Empire logistics market, where higher vacancy rates - now approaching nine percent — are translating to cheaper rents.

Conditions are slightly better at the East Coast ports of New York and New Jersey, because their diverse mix of trading partners include Asia, Europe, Latin America and South America.

Want Affordable Housing? Here’s Where to Find It

Tuesday, July 8th, 2008

Despite all the doom-and-gloom reports on the residential real estate market, there are some bright spots.  In several markets, housing has become surprisingly affordable to families earning a median household income of $61,500.  And there’s more good news.  Mortgage rates are again nearing the record lows of a few years ago; and family incomes jumped an average of a $2,500 between 2007 and 2008.

What are some of the markets most strongly impacted by this trend?

Indianapolis, IN - The largest affordable cities - Indianapolis, for example — tend to be in the Midwest.  More than 90 percent of all Indianapolis households have sufficient incomes to buy a median-priced $125,000 home.  During the first quarter of 2008, Indy ranked as the most affordable major U.S. housing market for the 11th consecutive quarter.

Stockton, CA: — The average single-family home price fell 35 percent to $230,800 in the first quarter of 2008, compared with $357,800 just two years previously.

Kokomo, IN: — Among smaller metro markets, Kokomo ranked well in terms of housing affordability during 2008’s first quarter.  A median-priced home in Kokomo is about $147,000.

Grand Rapids, MI: — Approximately 88.7 percent of homes sold were affordable, a 4.2 percent change from 2007.  A median-priced house in Grand Rapids is currently $132,100.

Youngstown, OH: — In this small city with a population of 82,000, the median sales price dropped 13.5 percent to $67,700 in just one year.

Make Green Buildings Grow

Monday, June 16th, 2008

Buildings four stories and higher use 65 percent of electricity generated in the United States, according to a recent article on the website http://www.tmcnet.com/.

Several states - notably California - are requiring all new government buildings to qualify for green certification.  Additionally, California is looking at the possibility of granting preferences to private building owners that are environmentally friendly when renewing leases with government agencies.

“All the people in the L.A. region want to come to my place to work,” said Peter Cho, chief engineer of the futuristic California Department of Transportation regional headquarters in downtown Los Angeles.  The 13-story green building, which occupies an entire city block, is attracting people with its sleek horizontal architecture, abundant natural lighting and healthier indoor air.

The building incorporates one monolithic solar-panel wall, which makes it 35 percent more energy-efficient than California state building codes require.  Another environmentally friendly element is the elevators that are programmed to skip two floors at a time to encourage building occupants to use the stairs.

Not unexpectedly, getting companies to build green is not easy.  According to the United States Green Building Council’s Lance Williams, “There is resistance to anything new, especially if it requires people to invest in something new or to believe in something new.  But there are people being converted…every single day.”

For their part, commercial building owners believe it is more effective to have direct financial incentives for going green.  Government’s green-building programs help in this way, and the Building Owners and Managers Association International is lobbying Congress to extend tax incentives to retrofit buildings to conserve energy.

(http://www.tmcnet.com/usubmit/2008/04/20/3397486.htm)