Activity across the L.A. five-county area was mixed in 2003 and there is an interesting trend of increased presence of video game publishers in Los Angeles County.

 “Despite caution on the part of business in investing in facilities, and further uncertainty caused by California’s rather hostile business environment, the expansion news for 2003 for Southern California was not bad.,” according to the Los Angeles County Economic Development Corporation (LAEDC).

“There were 315 major expansions during the year, down by only 4.3 percent or by 14 projects from 2002,” said Vice President and Chief Economist Jack Kyser. “On a positive note, the square footage of these projects increased by 31.3 percent over the year to 40.2 million square feet. Providing the punch here was Los Angeles County, with an increase of 78.5 percent to 24.1 million square feet.”

This data comes from an on-going survey conducted by the Los Angeles County Economic Development Corporation (LAEDC). The LAEDC defines a “major business expansion” as a lease or building permit of at least $1 million or of 20,000 square feet or more of space. “A useful rule of thumb is that for every major expansion, there are three smaller ones not tracked in the LAEDC’s survey. The survey is a useful indicator of who is doing what and where,” explained Kyser.

Activity around the five-county area in 2003 was mixed. In Los Angeles County, the number of major expansions slid by 20 to a total of 152. Orange County had an increase of 16 to a total of 112. The Riverside-San Bernardino area saw a decrease in activity, with 39 major expansions in 2003 compared with 49 in 2002. Ventura County held steady from 2002 to 2003, with 12 expansions in each year.           

The LAEDC survey also found that after the city of Los Angeles, Irvine in Orange County was the second most active municipality in Southern California during 2003.

By industry sector, the largest number of expansions in 2003 was recorded by logistics/warehousing, with 30, the same number as in 2002. Second ranked during 2003 were professional business services, with 25 major expansions. However, this was down from 38 in 2002. Third in 2003 was finance with 23, up from 17 major expansions in 2002.

“An interesting trend is the increased presence of video game publishers in Los Angeles County,” said Kyser. “The best known is Electronic Arts which is expanding its operations in Playa Vista, taking 250,000 square feet with a lease valued at $80 million. Other video game companies taking space in the County during 2003 included Konami Digital Entertainment Corporation in Century city; Sammy Studios Inc. in Sherman Oaks; Insomniac Games in Burbank; and the Climax Group in Venice. All are taking advantage of the surge in demand for video games as well as the access to entertainment companies.

The LAEDC’s ongoing survey results of the five-county area were released today (Thursday, March. 4, 2004) and it can be downloaded at www.MayoCommunications.com or at http://laedc.org.

The LAEDC is a private, non-profit 501(c) 3 organization established in 1981 with the mission to attract, retain and grow businesses and jobs in the Los Angeles region.

Editors: For advanced interviews and images contact: George Mc Quade or Aida Mayo at MAYO Communications at: 818.340.5300 or 818.618.9229 or PR@MayoCommunications.com.