Econowatch

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Honor Ranch Development Project Takes Next Steps

BY HOLLY SCHROEDER

President and CEO of the Santa Clarita Valley Economic Development Corp.

The Honor Ranch Site (Honor Ranch) is a potential development located in a County-owned vacant lot in the Santa Clarita Valley. This 206-acre plot along the eastern edge of the I-5 (north of the Castaic Junction) offers an excellent opportunity for a new jobs-creating development. It consists of a large contiguous land area with high visibility and freeway access.

The location has been identified as a potential development site for years. A motion was introduced by 5th District Supervisor Kathryn Barger on June 14, 2022, that enters LA County into an exclusive negotiation phase for the project. The “Honor Ranch Development Project” has now moved further in the process than ever before towards making this project a reality.

Trammell Crow Company (TCC) was chosen as the preferred developer for a 1.8 million SF project consisting primarily of new industrial facilities. TCC will work closely with LA County Public Works on the pre-development phase, as well as negotiating a final agreement. Honor Ranch has great potential to bring more high-quality jobs to our valley, allowing more residents in our expanding population to live and work right here in SCV!

At the behest of the SCVEDC to further our mission of increasing the highquality job base and fostering economic growth in the region, the County Board of Supervisors has made development of the Honor Ranch site a priority. The Board recognized the underutilization of the Honor Ranch site, that it could contribute to blight of the surrounding area, and its potential economic and workforce development opportunities. Work on the development began in earnest after a July 2016 Board motion directed the County to solicit input from experts about the potential of the site.

Fast forward to 2021 and TCC’s selection as the developer after a competitive bidding process. The Developer’s proposal contemplates a 1.8 million square foot mixed-use project that includes: • 1.5 million square feet of industrial business park (manufacturing, warehousing & distribution, media, and entertainment) • 250,000 square feet of life sciences office (research & development, bioscience) • 55,000 square feet of retail (neighborhood, quick service, traditional), and required parking and transportation infrastructure.

As the SCV grows, both in population and as a choice location for a diverse set of business sectors, development sites like Honor Ranch have great potential to capture expected growth and further enhance the economic development of the area. 40 miles north of Downtown Los Angeles, the site’s two miles of I-5 freeway frontage offers abundant freeway visibility with access from an existing interchange. The site’s generally flat topography is conducive to development.

Santa Clarita is ranked as the 13th Fastest Growing City in America in 2021 and this development has the potential to further grow the number of local high-quality jobs in the SCV. And with the numerous residential development projects underway here (21,500 alone at Fivepoint’s Valencia), our valley is well situated to meet the demand for jobs and housing alike! According to economist Dr. Mark Schniepp’s 2021 Economic Outlook, the majority of Santa Clarita Valley’s population growth is from people moving TO the SCV, and it’s not hard to imagine why! The Honor Ranch project can help provide economic and workforce development opportunities that growing regions like ours need to continue to thrive. 

Econo Watch

Santa Clarita Valley

Commercial Vacancy Rates Office Space Q2 2022 Q1 2022 Q2 2022 Sq Ft

18.95% 22.70% 2,869,754 Industrial Space 1.40% 1.10% 25,317,438 Total Marked Sq. Ft. Vacancy Percentage: 28,187,192 Office Space - as a % of Vacancy 10.18% 9.97% N/A Industrial Space - as a % of Vacancy 89.82% 90.03% N/A

Building Permits Jun ’22 May ‘22 Jun ’21

New Commercial/Industrial Building Permits 17 2 8 Commercial Tenent Improvements/Alterations 57 21 40 Local Company Stock Prices Jun ’22 May ‘22 % Change

California Resources Corp (CRC) 43.26 43.67 -0.94%

Carnival Corp. (CCL) 8.65 13.88 -37.68%

FivePoint (FPH) 3.91 4.86 -19.55%

Mission Valley Bank (MVLY) 13.6 13.99 -2.79% Six Flags * (SIX) Woodward (WWD)

Unemployment Rates

Santa Clarita Palmdale Lancaster Glendale Los Angeles County State 21.7 29.35 -26.06% 92.49 101.61 -8.98%

Jun ’22 May ‘22 % Change

5.1% 4.2% 21.43% 7.7% 6.7% 14.93% 7.7% 6.9% 11.59% 4.9% 4.3% 13.95% 5.2% 4.5% 15.56% 4.0% 4.3% -6.98%

Housing Stats SCV Average Home Price

SCV Average Condo Price SCV Home Sales May ’22 Apr ‘22 May ’21

917,100 944,400 879,500

580,900 619,500 559,300 1,161 943 1,443 SCV Condo Sales 450 359 560 SCV Avg. # of Days on Market (SF) 41 34 29 SCV Single Family Home Inventory 281 276 320

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