REAL ESTATE

Building Permits Up: Construction permits for office buildings in Orange County actually took a slight turn up during the first three months of this year, but the construction industry had better not celebrate yet. It’s probably only a statistical fluke, say the people who collect the figures. Besides, it isn’t much of an upturn anyway.

Here are the figures: Local governments issued permits for $53 million worth of office buildings during the first quarter, up 11% from last year’s $48 million, not much more than the inflation rate. But this year, like last, will probably see a drop in all types of building permits, including offices, according to the Construction Industry Research Board, an industry group that tracks permits. Permits are an indicator of future construction.

Last year, developers took out $234 million worth of permits, down 40% from $393 million in 1989. In fact, 1990 was the lowest year since the post-recession year of 1983, when $190 million worth of permits were issued.

The problem? It’s not that local governments aren’t giving developers permission to build, or entitlements, as they’re called in the jargon of the industry. Developers all over the county have entitlements to build office towers. The problem is money. The office market here, as in most of the nation, is overbuilt after an orgy of construction in the 1980s. In the peak year of 1986, for instance, $575 million worth of building permits for offices were issued in the county.

But now lenders won’t loan anyone money to build until the glut is burned off, which experts say could take several years in Orange County.