• UNEMPLOYMENT RATES
• LARGEST EMPLOYERS
• BUSINESS ENVIRONMENT
• FILM INDUSTRY
• VACANCY RATES
• RETAIL SALES
• HOTEL ENVIRONMENT

Santa Clarita is the fourth largest city in Los Angeles County with a population of 177,158 in January 2007 and the 24th largest city in the State of California. In Los Angeles County, only Los Angeles with a population of 4.0 million, Long Beach with less than 493,000, and Glendale with slightly over 207,000 were larger than Santa Clarita. Consequently, Santa Clarita plays an important role in the County based on its size.

UNEMPLOYMENT

Santa Clarita maintains one of the lowest unemployment rates in Los Angeles County. The City’s unemployment rate was 2.7% in May 2007 compared to 4.4% for Los Angeles County and 4.9% for the State of California.

Source: California Employment Development Department, June 2007
 

LARGEST EMPLOYERS

BUSINESS ENVIRONMENT

Santa Clarita’s local economy is primarily a service based economy with 42% of the businesses in the service sector. An additional 22% of businesses are in retail trade and 11% are in the finance, insurance, and real estate sector.

Source: City of Santa Clarita, April 2007

The businesses located in Santa Clarita can be categorized as small businesses with 59% employing less than 5 employees. Businesses between 5 and 9 employees account for 19% of all businesses in the City and only 5% employ in excess of 50 employees.

Source: City of Santa Clarita, April 2007
 

The amount of space Santa Clarita businesses occupy is relatively small. Close to one-half or 46% of businesses are in locations between 2,500 and 9,999 square feet with an additional 36% of businesses occupying less than 2,500 square feet.

Source: City of Santa Clarita, April 2007

WORKFORCE

Given the nature of Santa Clarita’s local economy, 48% of the workforce in the Santa Clarita Valley are employed in the services sector. An additional 13% of the  workforce is employed in manufacturing and 9% each are employed in the wholesale/retail trade and finance, insurance, and real estate industries.

Source: Alfred Gobar Associates’ Santa Clarita Labor Market Study 2005, January 2006

More than one-fourth or 26% of the Santa Clarita Valley’s workforce are in professional or specialized positions while another 18% are in executive or managerial positions and 15% are in marketing or sales.

Source: Alfred Gobar Associates’ Santa Clarita Labor Market Study 2005, January 2006

One-third or 32% of Santa Clarita Valley’s manufacturing workforce is employed in aerospace with an additional 18% in computers and electronics and 14% in biomedical manufacturing.
 

Source: Alfred Gobar Associates’ Santa Clarita Labor Market Study 2005, January 2006
 

Nearly one-fourth or 23% of the Santa Clarita Valley’s workforce in the services sector work in consumer services with an additional 21% in education and 18% in health services. The remaining services industry employs are evenly divided among entertainment / amusement, business / computers or engineering / legal services.

Source: Alfred Gobar Associates’ Santa Clarita Labor Market Study 2005, January 2006
 

Based on an independent study of 367 communities across the United States by the Kosmont-Rose Institute, cost ratings were developed in order to compare difference communities based on business taxes, telephone taxes, sales taxes, property taxes, electric taxes, and state income taxes.

Santa Clarita is ranked as Low Cost ($$) compared to the Cities of Los Angeles and Pasadena which are both ranked as Very High Cost ($$$$$). Out of 224 California cities, Santa Clarita is ranked as the 11th lowest cost city in Los Angeles County.

Notes: $ represents cost rating. $ = Very Low Cost, $$ = Low Cost, $$$ = Medium Cost, $$$$ = High Cost, and   $$$$$ = Very High Cost.
Source: Kosmont-Rose Institute, 2005 Cost of Doing Business
 

FILM INDUSTRY

The number of filming days in 2006 increased 9% to 753 days from 2005. Additionally, filming in Santa Clarita contributed $16.7 million to the local economy.

Source: City of Santa Clarita Film Office, 2007

The number of permits issued has increased from 2004. In 2006, 301 film permits were issued compared to 271 in 2004. This suggests the number of days per permit slipped from 3.3 film days per permit in 2004 to 2.5 film days per permit in 2006.

Source: City of Santa Clarita Film Office, 2007
 

The majority of the economy impact of filming in Santa Clarita occurs in the latter half of the year. In fact, the money spent in the City steadily increases from May until it peaks in September and then a mini-peak is felt in November just prior to the holiday season.

Source: City of Santa Clarita Film Office, January 2007

VACANCY RATES

Office vacancy rates in Santa Clarita remained flat at 8% in 2006 while industrial vacancy rates climbed to 6% in the second half of the year and retail vacancy rates fell to 1% by year-end.

Source: CoStar Property reported by City of Santa Clarita, January 2007
 

RETAIL SALES

Over the past 10 years, retail sales in Santa Clarita have soared from just over $1 billion in 1996 to just under $2.5 billion in 2006.

Source: California Retail Survey, 2007

Santa Clarita is on par with major shopping cities such as Glendale, home to the Glendale Galleria, and Pasadena, home to Paseo Colorado, Lake Avenue shopping district, and Old Town Pasadena, in terms of both retail dollars spent and number of retail stores in the communities. Retail sales in Santa Clarita are higher than in these other cities and there are more retail outlets in Santa Clarita than in Glendale and slightly fewer than in Pasadena.

Source: California Retail Survey, 2007
 

Retail sales in Santa Clarita in 2006 reached $2.43 billion of which 28% of the sales were in automobile dealerships and suppliers followed by 16% in general merchandise stores, 11% in restaurants and bars, 10% in building materials stores, and 9% in service stations.

Source: California Retail Survey, 2007
 

HOTEL ENVIRONMENT

Santa Clarita’s hotel market remained very strong throughout 2006. Occupancy rates and average daily room rates peaked in the summer months at $134.73 and 93%, respectively.

Source: PKF Consulting

Santa Clarita’s average daily hotel room rate of $124.96 in 2006 remains more affordable than that of Los Angeles County at $145.59. Santa Clarita’s average daily hotel rates are approximately one-half of those in Santa Monica and lower than rates in Hollywood and Pasadena. In general, they were comparable to those in Long Beach.

Source: PKF Consulting, Trends Reports December 2005 and December 2006

Santa Clarita maintains the highest hotel occupancy rates among other Los Angeles area communities. Santa Clarita’s occupancy rate of 84.26% was the higher than the County’s rate of 77.69%.

Source: PKF Consulting, Trends Reports December 2005 and December 2006

Hotel rooms in Santa Clarita account for 39% of all hotel rooms in the Santa Clarita Valley including those currently under construction. With the opening of a new hotel in the near future the number of rooms within the City limits will increase to 47% with the remaining 53% of rooms outside the City.

Source: City of Santa Clarita, April 2007
 

The Santa Clarita Valley is home to a wide variety of hotels including upscale, family-oriented, and budget hotels. The current hotel properties offer limited meeting space in ballrooms and the recently completed Embassy Suites added a 4,500 square foot ballroom into the meeting space availability that is attractive not only to individuals but also companies planning large formal events.

Source: City of Santa Clarita, June 2008

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