IN THIS ISSUE:
UPCOMING EVENTS:
Fall/Winter 2009 >
Gehry Partners to open new world headquarters in El Segundo
Summer 2009 >
Equinix Data Center to Open
With its now 50-year-old Barbie brand leading the way, El Segundo-headquartered toymaking giant Mattel, Inc. is one of the world's largest apparel manufacturers.
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A MESSAGE FROM THE MAYOR
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As we head into spring, our nation, state and region continue to face their staunchest economic challenges in decades. While not immune to today's recessionary woes, El Segundo remains in strong financial shape and is poised to ride out the coming storm.
Thanks to our many amenities, prime location, proactive, business-friendly approach, and lease rates signicantly below those of West Los Angeles and other prominent office markets, El Segundo has become the relocation center of choice for a diverse array of businesses.
We're proud to welcome globally renowned medical device manufacturer Karl Storz Endoscopy-America, which will soon wrap up its move-in at the 121,000 square foot Grand Avenue Executive Center. We're also pleased to report that two of the world's largest data center operators/developers--Equinix and Base Partners--are now under construction with major new facilities here, further cementing El Segundo's growing reputation as a data center hotspot.
Last year's announcement of Frank Gehry's relocation to El Segundo has spurred revived interest in our city as a creative media hub. We are also in negotiations with a major visual effects studio and a prominent integrated media firm to move their companies to El Segundo.
Despite a slow real estate market, commercial projects continue to thrive in El Segundo. Construction will soon begin on a five-acre, multi-use business park, 222 Kansas, the largest of its kind ever west of Sepulveda Boulevard.
A new retail center, El Segundo Gateway (a.k.a. LAX Business Center), comprised of several notable restaurants and stores, is also underway on Sepulveda just north of Grand Avenue.
Existing developments also continue to flourish, including The Edge at Campus El Segundo, which recently unveiled several fine restaurants and several quality professional service offices at its burgeoning mixed-use business park; and our prized retail complex Plaza El Segundo, which celebrated several business grand openings in recent months, including the acclaimed eatery The Counter.
In coming years, to further accommodate our growing employee base, we'll also see several new hotel facilities open on the east side of town, including Starwood Hotel's planned 167-room Aloft at Continental Boulevard and Grand Avenue.
Additionally, our City Council recently revised a proposal for a select 179-room hotel at Sepulveda and Walnut, which would be developed by commercial real estate giant Trammell Crow.
Our Class A vacancy rates continue to drop as companies flock to our community to take advantage of great lease values, reasonable tax rates and superior City services.
Still, there is still plenty of prime space available and ample opportunity to realize your business dreams in one of the region's most economically diverse and thriving business centers.
It's not too late to jump on the El Segundo bandwagon. For more information about us, log onto: http://www.themostbusinessfriendlycity.com
Or call us over at City Hall. We'll be happy to show you around and get you acclimated to the many benefits of setting up shop in El Segundo.
Sincerely,
Mayor Kelly McDowell
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SIR RICHARD BRANSON VISITS SECOND CITY
Scott Reed (L) and Sir Richard Branson (R)
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While in Los Angeles in early February to promote the launch of the new V Australia service between LAX and Sydney, Virgin Group Chairman enjoyed dinner at Downtown El Segundo fine dining favorite Second City Bistro.
Accompanying Branson was an entourage that included Australian actor Julian McMahon of the TV hit series Nip/Tuck.
Selected by Branson because of a stellar rating in the nation's pre-eminent restaurant guide, the Zagat Survey, Second City Bistro also welcomed that publication's founder Tim Zagat earlier that week for dinner.
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OFFICE VACANCIES DOWN AS FIRMS FIND THEIR WAY TO EL SEGUNDO
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According to fourth quarter 2008 figures recently released by Grubb & Ellis, El Segundo's Class A office vacancy rates have dropped below 10 percent and are now at their lowest levels in nearly a decade.
As recently as five years ago, vacancy numbers in El Segundo exceeded 20 percent. But lease rates considerably lower than the pricier West Los Angeles market, coupled with El Segundo's many amenities, business-friendly reputation, and available prime space have spurred a migration to the community.
Among the trends: The arrival of several large data centers, an influx of creative arts & media companies led by architect Frank Gehry, and major expansion projects such as Northrop Grumman's buildout of the former Xerox Centre.
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EL SEGUNDO ADDING JOBS DESPITE TOUGH ECONOMY
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Despite recent disheartening statistics--the national unemployment rate rose to 7.6 percent in January as employers slashed nearly 600,000 jobs, El Segundo has actually managed to add to its workforce during these especially troubled times.
Thanks to ongoing business recruitment, the City of El Segundo estimates that by early 2010, its local permanent job count will expand by over 1,000 from today's numbers.
Several major firms have contributed to the upswing. Raytheon recently redeployed 375 workers from its Long Beach facility to El Segundo along with 220 additional contract IT workers from Computer Sciences Corporation.
BT Americas, which just completed its solar photovoltaic array project, expects to add up to 100 employees as a result of new business activity and relocation.
SAIC is planning to augment its local operations at El Segundo Gateway (aka LAX Business Center) with a planned summer move-in of roughly 150 to 200 employees.
Karl Storz is in the process of a phased move-in into its new West Coast headquarters facility which will house between 300 to 400 employees.
Gehry Partners/Gehry Technology is currently in plan check for tenant improvements to its new El Segundo headquarters facility, which is expected to have an initial headcount of roughly 165 employees.
And finally, the planned consolidation in El Segundo of Northrop Grumman's former Integrated Systems sector with the Redondo Beach Space Technology sector should further bolster the local job market.
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EL SEGUNDO GETS CREATIVE
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Over the last few years, El Segundo has emerged as the destination of choice for a number of major players in the burgeoning creative sector. According to statistics recently released by the Los Angeles County Economic Development Corporation, the creative economy is responsible for nearly one million direct and indirect jobs in LA and Orange counties, more than $3.8 billion in annual state tax revenues, and nearly $100 billion in sales receipts in LA County alone.
El Segundo is a big part of that picture, as it is home to major players in the fields of advertising/communications, architecture/design, digital media/publishing, product/industrial design, entertainment and fashion.
From long-standing corporate citizens such as Mattel, the world's largest toymaker headquartered here, to notable newcomer and globally renowned architectural legend Frank Gehry, El Segundo is undoubtedly a creative sector stronghold.
learn more >>
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EL SEGUNDO AEROSPACE FIRMS GET FRONT COVERAGE
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Aviation Week & Space Technology magazine, the world's most prominent source for space and business aviation information, products and services, showcased two El Segundo aerospace firms on its front cover within a two-week span late last year.
The November 24, 2008 issue featured a cover photo of Aerospace Corp. CEO Wanda Austin with an accompanying article describing how the company's 4,000 engineers and scientists are "the keys to national security."
On December 8, the magazine's cover showed researchers at Boeing Satellite Development Center at work on the US Air Force's new Wideband Global Satcom prototype, which uses a standard commercial 702 bus and xenon propulsion. The new system is expected to increase data transmissions by 10 times over the first WGS.
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EL SEGUNDO: DATA CENTER HOTSPOT
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Thanks to its prime location, extensive fiber network and reasonably priced office space, El Segundo has become the preferred hotspot for data centers. Since the opening of 365 Main's 135,000 square foot facility in 2005, the city has also welcomed Equinix, Inc., one of the world's largest data center operators that chose El Segundo as home for two of its centers in order to expand its network in the Los Angeles market where many of the company's Internet content and entertainment customers are located.
In 2005, the Equinix launched its first El Segundo center with a 107,000 square foot facility at 1920 E. Maple Street. Construction is now underway on a new 314,288 square foot project at the southwest corner of Mariposa Avenue and Douglas Street at the former El Segundo Technology Center which the company purchased in 2007 for $49 million.
Meanwhile, another major data center operator, San Francisco-headquartered Base Partners Inc., has begun construction on a six-acre, 121,000 square foot data center at 444 N. Nash Street. The project upgrades and expands an existing building by nearly 40,000 square feet.
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STAY IN THE KNOW
In addition to scanning our popular "News Links" feature, which provides updates on important news items about El Segundo business, be sure to check out our video player for important messages and reflections on 2008 from our City leaders--Mayor Kelly McDowell, Mayor Pro Tem Eric Busch and Councilmember Don Brann--as well as Los Angeles County Economic Development Corporation President Bill Allen.
Send us feedback to tell us what you think at: feedback@elsegundobusiness.com
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