Vacancy rate in Newport shoots up to 8%

A new report released by Newport Beach officials Friday reveals the number of empty storefronts is growing in the city and business is down in some of Newport’s older commercial areas.

The vacancy rate in commercial buildings across Newport Beach has grown from 5% in the second quarter of 2006 to about 8% in the first quarter of 2009, according to the report.

Vacancies are still lower than the city’s highest vacancy rate, 11% in 2002, according to the report.

The number of vacant storefronts was higher in some areas of the city than others, according to the report. Newport Center has a vacancy rate of 10%, and the area around John Wayne Airport has a vacancy rate of 15%.

Business license renewals in Newport Beach are down by 8% from last year, and city revenue from renewals is 3% lower than last year, according to the report. The number of construction projects in the city also has been shrinking for the past few years, according to the report. The city has been issuing fewer building permits each year since 2005. The city issued 10,135 building permits between 2005 and 2006, but only 5,036 permits were issued between 2007 and 2008, according to the report.

“These data indicate that the number of construction projects has decreased over the past few years, but the projects underway are larger ones,” according to the report

The city’s Economic Development Committee found in a series of meetings late last year that business in some of the city’s older areas, including Balboa Island and Corona del Mar, was down across the board by anywhere from 10% to 15%. Vacation rentals on Balboa Island are down by about 30%, according to the report.

Reporter BRIANNA BAILEY may be reached at (714) 966-4625 or at brianna.bailey@latimes.com.