Building Activity Update

Division of Building SafetyPresentation to the Board of County Commissioners

March 4, 2008

• Residential Construction

• Commercial Construction

• Building Trends

• Forecast

• Summary

• Green Development

• Action Requested

• Residential Construction

• Commercial Construction

• Building Trends

• Forecast

• Summary

• Green Development

• Action Requested

PRESENTATION OVERVIEWPRESENTATION OVERVIEW

• Residential Construction

• Commercial Construction

• Building Trends

• Forecast

• Summary

• Green Development

• Action Requested

• Residential Construction

• Commercial Construction

• Building Trends

• Forecast

• Summary

• Green Development

• Action Requested

BUILDING ACTIVITY UPDATEBUILDING ACTIVITY UPDATE

RESIDENTIAL CONSTRUCTIONRESIDENTIAL CONSTRUCTION

• Residential Building Permits 1998-2007

• Value of Residential Construction 1998-2007

RESIDENTIAL PERMITSRESIDENTIAL PERMITS

• Moderate Growth through 2002

• Housing “Boom” 2003 - 2006

• 2007 60% Below 2006Residential Permits Issued

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Calendar Year

Nu

mb

er

of

Pe

rmit

s Is

su

ed Residential

Permits

RESIDENTIAL VALUATIONRESIDENTIAL VALUATION

• Strong Growth 2002 - 2006

• 2007 Equal to 2000

Residential Valuation

$0

$200,000,000

$400,000,000

$600,000,000

$800,000,000

$1,000,000,000

$1,200,000,000

$1,400,000,000

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Calendar Year

Val

uat

ion

ResidentialValuation

• Residential Construction

• Commercial Construction

• Building Trends

• Forecast

• Summary

• Green Development

• Action Requested

• Residential Construction

• Commercial Construction

• Building Trends

• Forecast

• Summary

• Green Development

• Action Requested

BUILDING ACTIVITY UPDATEBUILDING ACTIVITY UPDATE

COMMERCIAL CONSTRUCTIONCOMMERCIAL CONSTRUCTION

• Commercial Building Permits 1998-2007

• Value of Commercial Construction 1998-2007

COMMERCIAL PERMITSCOMMERCIAL PERMITS

• Mostly Stable Through 2002

• Strong Commercial Growth 03 – 06

Commercial Permits Issued

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Calendar Year

Nu

mb

er o

f P

erm

its

Isu

ed

CommercialPermits

COMMERCIAL VALUATIONCOMMERCIAL VALUATION

• Reaction to 9/11 Begins In 2002

• Large Projects Return in 2007

Commercial Valuation

$0

$200,000,000

$400,000,000

$600,000,000

$800,000,000

$1,000,000,000

$1,200,000,000

$1,400,000,000

$1,600,000,000

$1,800,000,000

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Calendar Year

Val

uatio

n

CommercialValuation

• Residential Construction

• Commercial Construction

• Building Trends

• Forecast

• Summary

• Green Development

• Action Requested

• Residential Construction

• Commercial Construction

• Building Trends

• Forecast

• Summary

• Green Development

• Action Requested

BUILDING ACTIVITY UPDATEBUILDING ACTIVITY UPDATE

BUILDING TRENDSBUILDING TRENDS

• Comparative Building Valuations

• Orange County Is Unique

BUILDING TRENDSBUILDING TRENDS

• Housing – Moderate Increases 98 – 03

• High Rise Projects Decline In 2002

• Large Projects Return In 2007

Average Valuation per Permit

$0.00

$50,000.00

$100,000.00

$150,000.00

$200,000.00

$250,000.00

$300,000.00

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Calendar Year

Va

lua

tio

n/P

erm

it

RESIDENTIAL

COMMERCIAL

BUILDING TRENDSBUILDING TRENDS

Orange County Is Unique!

• Downtown Orange County

• Convention Center

• Attractions

• Growing Economic Diversity

• High Tech Industry Growth

• Residential Construction

• Commercial Construction

• Building Trends

• Forecast

• Summary

• Green Development

• Action Requested

• Residential Construction

• Commercial Construction

• Building Trends

• Forecast

• Summary

• Green Development

• Action Requested

BUILDING ACTIVITY UPDATEBUILDING ACTIVITY UPDATE

FORECASTFORECAST

• McGraw-Hill Construction Index

• Fishkind & Associates Report

• Historic Data

• New Projects

FORECASTFORECAST

• Residential – Slow Recovery in 2009

• Commercial – Small and mid size Projects Slowing through 2008

• Large Commercial – Steady in the Convention Center Area

• Residential Construction

• Commercial Construction

• Building Trends

• Forecast

• Summary

• Green Development

• Action Requested

• Residential Construction

• Commercial Construction

• Building Trends

• Forecast

• Summary

• Green Development

• Action Requested

BUILDING ACTIVITY UPDATEBUILDING ACTIVITY UPDATE

SUMMARYSUMMARY

• Residential Building Remains Marginal Through 2008

• Builders Looking Forward to New Markets and Directions

• Small and Medium Commercial Projects Slowing Through 2008

• Large Commercial Projects Doing Well Into 2009

GREEN DEVELOPMENTGREEN DEVELOPMENT

• Green Development Program

• Action Requested

GREEN DEVELOPMENTGREEN DEVELOPMENT

Challenges –

• Multiple Standards Are Confusing

• Need Vision, Clarity, Direction

• Long Term Return on Investment

• Few Incentives for Owners

• Private Sector Interested But Not Motivated

GREEN DEVELOPMENTGREEN DEVELOPMENT

Actions -

• Local Government Leadership

• Climate Change Implementation Plan

• Action Plan for County Buildings

• Orange To Green Development Program

ORANGE TO GREEN ORANGE TO GREEN DEVELOPMENT PROGRAMDEVELOPMENT PROGRAM

• Green Carpet Service

• Expedited Permitting & Development Review

• Community Recognition

• Design Awards

• Residential Construction

• Commercial Construction

• Building Trends

• Forecast

• Summary

• Green Development

• Action Requested

• Residential Construction

• Commercial Construction

• Building Trends

• Forecast

• Summary

• Green Development

• Action Requested

BUILDING ACTIVITY UPDATEBUILDING ACTIVITY UPDATE

ACTION REQUESTEDACTION REQUESTED

• Adoption of Orange to Green

Development Program Resolution

Building Activity Update

Division of Building SafetyPresentation to the Board of County Commissioners

March 4, 2008