CLIPBOARD : Non-Residential Building Valuations

Commercial construction in Orange County, unlike home-building futures, shows no signs of coming out of its current slump. At least, that is the case insofar as building permit valuations are indicative. During the first four months of 1991, the most recent period for which information is available, the value of permits issued was $288.7 million, 28.5% less than the comparable figure for 1990. At the end of three months, the year-to-date total was 26% behind last year’s total.

Nearly all categories of these valuations are down, particularly those for hotel/motel construction. The only area where there has been any growth is in alterations and additions, and it continues to be the single largest piece of the picture with valuations up almost 6%.

Orange County is not alone in this slump. The four contiguous counties--Los Angeles (-27%), Riverside (-17%), San Bernardino (-27%) and San Diego (-30%)--are all running behind their 1990 totals as well. The statewide total is down 23%.

Of all the commercial construction permits issued during the first quarter in the local five-county area, 15% were for Orange County projects; about 9% of the value of all permits issued statewide occurred here.

Here’s how the first four months of 1991 compare to last year:

1991 % of Jan.-April Jan.-April 1990-1991 5-County Building Type 1990 1991 % Change Total Industrial $29,997 $11,320 -62.3 5.8 Office 69,721 66,739 -4.3 27.1 Stores/Mercantile 71,267 26,377 -63.0 10.1 Hotels/Motels 15,734 1,211 -92.3 0.9 Alterations/Additions 131,084 138,731 +5.8 18.6 TOTAL BUILDING* $404,030 $288,717 -28.5 15.3

1991 % of State Building Type Total Industrial 3.8 Office 15.3 Stores/Mercantile 5.6 Hotels/Motels 0.8 Alterations/Additions 9.9 TOTAL BUILDING* 8.9

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

* Includes the above categories plus others not shown.

Source: Construction Industry Research Board