The California Employment Development Department (EDD) released January unemployment estimates last week. Seasonally adjusted, the Los Angeles County unemployment rate was 5.7%, up from 5.4% in December, from 5.3% in November, and from 4.7% a year earlier. January was the eighth consecutive month that the County’s unemployment rate increased over the previous year. Last month’s County unemployment rate was the highest since February 2005 (5.7%). Historically speaking, 5.7% is not high and poses no immediate threat to the industrial real estate market.
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Commercial Loan Tightening
Standards for commercial real estate loans were tightened by a whopping 80% of responding banks. About 46% of banks reported that demand for CRE loans has weakened.
Commercial & industrial loan credit standards and lending terms have been tightened by 32% of banks for large-and mid-size business customers and by 30% of banks for small business clients. Here also, loan demand has weakened. The pool of buyers has decreased and thus demand has further decreased.
Preferred Freezer Expands In Los Angeles And Vernon
Preferred Freezer Services of Newark, NJ built and opened 8 new cold storage buildings in strategic locations throughout the USA in 2007. Starting off this very busy year, Preferred Freezer Services opened the first of these warehouses on January 2nd in Los Angeles CA. It is their 16th warehouse nationwide and 5th facility in Los Angeles. Â This new, custom build warehouse will be known as Preferred Freezer Services Long Beach Freeway (LBF), an is located at 4901 Bandini Blvd., Vernon, CA. Nearby locations include: Alameda Street and 52nd Street, and the Washington Blvd. freezer. Next to the Washington Blvd facility, Los Angeles, they are building another freezer unit adjacent and east to the existing warehouse. This latest warehouse should be completed in 2008.