Executive Decision - March/April 2008 - (Page 62)

economic profile large corporations relocating to the region. However, the inherent appeal of the area as a place to ‘work, live and play,’ far surpasses its challenges. In addition, California’s diverse economy provides stability in that no Century City one or two industries bear the weight of the region’s economic health. Our labor pool is good, investment capital is still flowing into the region, we are a trade hub and our growth rate across the board surpasses the national economy.” A State of Many Economies In summary, “the California economy is really many economies within a single state and has to be viewed somewhat separately to get a good snapshot of market trends,” according to Michael Lynch, chief investment officer of Arden Realty, Inc. of West Los Angeles. In spite of recent volatility of the national economy, Southern California continues to remain relatively strong in most markets and exceedingly strong in select areas. West L.A. has sustained its momentum and investment appeal across the board and continues to be one of the best markets in the country,” Lynch adds. “In a sense, West Los Angeles and Century City are quintessential L.A. markets, stimulated by the broad diversification of the economy and industry sectors, the expansion of technology into entertainment and the inherent appeal of the California lifestyle. Slightly less buoyant are Orange County and San Diego that have been more impacted by the mortgage industry and new construction. The “There are no guarantees, of course, but California is positioned well even as we ‘wait and see’ the direction of the national economy. California has resilient growth engines, tremendous diversity, a great labor force in both the blue and white collar sectors and continued benefit from growth in the Pacific Rim,” Lynch says. XD T A K E AWAY VA L U E TV A TM Why California? Economy produces more than $1.54 trillion in goods and services annually. Attracts direct foreign investment of $120 billion annually. More than 15,000 miles of highways and freeways, 12 cargo airports, 11 cargo seaports, 18 foreign trade zones, 39 Enterprise Zones and exports of more than $110 billion annually. Tourism market exceeds $82 billion annually. construction activity in Orange County, in particular, has put a temporary damper on lease rates. That said, there is still growth across the board in Southern California, albeit slower, with an upturn expected in 2009 and 2010,” Lynch continues. San Francisco and Palo Alto, he explains, stand out as strong Northern California markets with good job growth; a high-tech industry that generates revenue in addition to innovation; a highly educated workforce; and continued flow of venture capital. Downtown San Francisco has less depth in technology but a strong backbone of tenants in financial services that continue to make it a vibrant financial hub. Continuing, Lynch says, “the high cost of living in California—workforce housing—is certainly a hurdle to Employment Training Panel helps pay for workforce training. By the end of 2008, employment is expected to reach about 1 7.4 million. Growth segments will be in professional and business services, food service, education, health care, high-tech and bio-technology. By 2014, total employment is projected to reach 19 million. Job growth is expected in retail, food service, health care, gaming, education, construction and computer-related fields. Tax credits and incentives for businesses investing in Enterprise Zones. 62 EXECUTIVE DECISION I execdecision.com http://execdecision.com

Table of Contents Feed for the Digital Edition of Executive Decision - March/April 2008

Executive Decision - March/April 2008 Contents Index of Advertisers Contributing Editors From the Editor's Desk Publisher's Note You Be the Judge - Unionization Thought Leader - Pitney Bowes Management - Flying High for Long-Term Results Strategies - Sovereign Wealth Funds Cover Story - In Whom Do We Trust? The Movement for Greater Accountability & Disclosure Finance/Legal - The New Boycott Model Green At Work - Transforming for Sustainability Technology - Embracing Risk Leadership - Executive Reputation Management The Global Village - China Moves to Curb Prices Economic Profile - California Gold Rush Transformations - I Can See Clearly Now, The Brain Is Gone Marketing - Effectively Using Market Research The Bottom Line - Brands: A Shrinking Advantage or Shifting Advantage? Pulse - Pandemic: Not If But When SPECIAL SECTION - Living On the Green: Luxury Golf Destinations

Executive Decision - March/April 2008

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