CLIPBOARD : Non-Residential Building Valuations

During the first six months of the year most of the action in Orange County commercial construction was in alterations of and additions to existing buildings. Between January and the end of June, the most recent period for which information is available, 59% of the value of all permits issued was for this kind of construction. During the period, the total value of permits was just $271 million, 39% less than the comparable figure for 1991.

Valuations for office buildings and hotels/motels were spectacularly lower than during last year’s first six months, both at least 72% off the pace. Even the alterations/additions total was 18% less than 1991.

The huge valuation decline in Orange County was a part of a regional slump. The five other Southern California urbanized counties--Los Angeles (-29%), Riverside (-18%), San Bernardino (-44%), San Diego (-36%) and Ventura (-21%)--were all running behind their 1991 totals as well. The statewide total was down 20%.

Of all the commercial construction permits issued during the first quarter in the local six-county area, 14% were for Orange County projects. County permits accounted for 7% of the value of all permits issued statewide.

Here’s how the first half of 1992 compared to last year:

1992 % of Jan.-June Jan.-June 1991-1992 6-County Building Type 1991 1992 % Change Total Industrial $22,805 $9,795 -57 8 Office 81,502 19,360 -76 13 Stores/Mercantile 64,488 36,442 -43 11 Hotels/Motels 1,211 334 -72 1 Alterations/Additions 195,456 160,596 -18 17 TOTAL BUILDING* $441,439 $271,065 -39 14

1992 % of State Building Type Total Industrial 3 Office 5 Stores/Mercantile 5 Hotels/Motels 1 Alterations/Additions 9 TOTAL BUILDING* 7

Note: Amounts listed in thousands of dollars, not adjusted for inflation.

* Includes the above categories plus others not shown. Source: Construction Industry Research Board