Local economy plows ahead

Several of the area's top financial and real estate experts assembled in Westlake Village last week in an attempt to provide an accurate forecast for the local economy.

For 2006, can you say-optimistic?

As expected, a strong commercial and residential real estate sector continues to drive the region's growth. Undaunted by rising land values and escalating construction costs, builders plan on putting up approximately one million square feet of new office space in Westlake Village alone during the next several years.

But isn't there a glut of office space already? The numbers say no. Occupancy rates continue to rise as businesses flock to the area and seek those upscale addresses from Calabasas to Newbury Park.

In the retail space, auto malls, shopping malls and furniture stores are feeding huge tax revenues into both city and corporate coffers. And for every restaurant that goes out of business, another three to four are waiting in the wings, experts say. With businesses plowing ahead, our schools and cities will be able to share in the wealth.

In short, the housing market boom was followed by an office market boom and then by a service industry and retail boom so that all the new residents could have a place to spend their money. Maybe it's not quite that simple, but you get the picture. The trickle down effect of a strong local economy is undeniable.

The fly in the ointment is affordability. With commercial lease rates at an all time high, we're only one hiccup away from businesses perhaps having to pull up stakes and leave landlords holding the bag. And with the average home sale in the region now over $1 million, and with new housing projects finding it more and more difficult to get off the ground-Moorpark's North Park residences just went down in defeat-young workers will find it increasingly hard to put down roots in the area. Even if home prices cool off, as they have recently, affordability still remains a problem.

Locally, it's hard to imagine the economy turning sour with things going the way they are. In the meantime, count your blessings and try to save for that inevitable rainy day. For now, at least, the forecast remains sunny.

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