Economic Profile - City of Cerritos

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Statistical SummaryBased on the data analysis from a wide variety of sources, Cerritos maintains a relatively healthy economicbase as compared to the region, despite the current nationwide economic decline. Below is a summary of themajor findings of the Cerritos Economic Profile for Spring 2010.Major RevenuesThe City of Cerritos has two (2) major revenue sources: redevelopment tax increment and sales tax. Both ofthese sources provide funding for a wide variety of service and infrastructure improvements. Redevelopmenttax increment decreased slightly (3%) from the first quarter 2009 to first quarter 2010. Tax increment revenuefor the first quarter 2010 was $5,987,307, compared to $6,168,633 in the first quarter 2009. Sales taxrevenue for the fourth quarter of 2009 totaled $4,097,634, which is a decrease from the same quarter in 2008.Cerritos has four major areas of business activity: Cerritos Industrial Park, Cerritos Towne Center, LosCerritos Center and the Cerritos Auto Square. The Los Cerritos Center generated the most sales tax at$1,311,419. The Cerritos Auto Square, the largest auto center in the world, generated the second greatestamount of sales tax with $1,162,907 for the fourth quarter of 2009. Based on trend analysis of the LosCerritos Center, sales have increased from quarter 2009-2. In addition, sales at the Cerritos Towne Centerincreased in quarter 2009-4. Sales at the Cerritos Auto Square have remained low; however, in February2010, sales increased 12% over the same period in 2009.Based on a review of businesses by NAICS code, Retail Trade generates the greatest amount of revenue forthe City of Cerritos. In fact, 74% of sales tax comes from the retail sector, which includes the Cerritos TowneCenter, the Los Cerritos Center and Cerritos Auto Square. Within the Retail Trade sector, the Motor Vehiclesand Parts Dealers subsector generates the greatest percentage of sales tax for the City at 35%, Clothing andClothing Accessories Stores generate 30%, Durable Goods and Merchant Wholesalers generate 16% andGeneral Merchandise Stores generate 15%.EmploymentCerritos has a wide variety of businesses and agencies that contribute to the local economy. The top tenemployers in the City are: ABC Unified School District, United Parcel Service, AT&T Wireless Services,Southern Wine & Spirits of Southern California, City of Cerritos, College Hospital, Inc., S&J Chevrolet,Nordstrom, Inc., Delta Dental of California and Norm Reeves of Cerritos.From the second quarter 2008 through the second quarter of 2009, most industries experienced a decease inemployment. The Retail Trade industry had the highest number of employees with approximately 6,679 andWholesale Trade was second with approximately 3,271 employees. The weighted average salary for allindustries in Cerritos is $40,255. The industries with the highest average payroll include Management ofCompanies and Enterprises at $68,293, and Wholesale Trade at $56,802 (Utilities has the highest payroll;however, only a few people are employed in this industry).A total of 33,591 persons work in Cerritos. Of Cerritos’ four (4) major areas of business activity, the CerritosIndustrial Park has highest number of employees with approximately 10,253, or 30% of the total number ofemployees in Cerritos.UnemploymentThe unemployment rate among Cerritos residents is approximately 6.7%, which is the lowest among itssurrounding cities and one of the lowest in comparison to cities with similar size and/or demographics in theregion. In addition, the Cerritos unemployment rate is lower than Los Angeles County (12.3%), OrangeCounty (10.1%) and the State of California (13%).Cerritos Economic Profile - Spring 201026
Statistical Summary/StrategiesCommercial Real EstateCerritos currently has a total vacancy rate of 1,443,219 square feet, which is approximately 7.06% of the totalavailable real estate space in Cerritos (20,449,552 sq. ft.). Of the total vacant space in Cerritos, 88% isindustrial space (1,278,739 sq. ft.), 11% is office space (153,729 sq. ft.), and 1% is retail space (10,751 sq.ft.). When compared to Los Angeles County and Orange County, Cerritos office vacancy rate (10.8%) islower than Orange County (26.9%) and Los Angeles County (16.6%). However, Cerritos’ industrial vacancyrate (8.9%) is higher than Orange County (7.0% ) and Los Angeles County (3.4% ). Industrial vacant spacein Cerritos includes a greater proportion of warehousing and distribution businesses, which require largefacilities. Therefore, a single vacancy may contribute a large amount of square footage to the overall vacancyrate.HousingHousing in Cerritos has experienced a decline in the median sale price of a home over the past few years.This is in correlation with the current housing crisis that is affecting all cities nationwide. However, singlefamilyhomes in Cerritos declined at a lower rate than single-family homes in Los Angeles County and OrangeCounty. In fact, the median home price increased from $488,000 in March of 2009 to approximately$540,000 in March 2010. The median home sale price for a condominium is at approximately $363,000 forMarch 2010.Statistical Trend AnalysisBased on statistical trend analysis of all economic sectors in the City, some industries are showing gains,some are remaining constant and others have experienced some decline. Below is a summary of some ofthe economic trends in Cerritos: Increase- Sales tax for Los Cerritos Center- Sales tax for the Cerritos Towne Center- Housing sale prices continue to grow in Cerritos Constant- Redevelopment Agency tax increment- Sales tax at the Cerritos Industrial Park- Unemployment remained constant at 6.7% Decrease- Overall sales tax- Sales at the Cerritos Auto Square- Overall employment in CerritosCerritos Economic Profile - Spring 201027
Page 1 and 2: Quarterly Market Trend Analysis for
Page 3 and 4: Economic ProfileTable of ContentsSe
Page 5 and 6: Major Revenues
Page 7 and 8: Major RevenuesSales TaxFor the four
Page 9 and 10: Major RevenuesSales Tax by Geograph
Page 11 and 12: Sales Tax—Top Five GeneratorsMajo
Page 13 and 14: Auto SalesCerritos Auto Square—To
Page 15 and 16: Employment/Unemployment
Page 17 and 18: EmploymentTotal Number of Employees
Page 23 and 24: CommercialReal Estate
Page 26 and 27: Commercial Real EstateCommercial Re
Page 28 and 29: HousingMedian Home Sales Price—Si
Page 32: Data SourcesMajor RevenuesCity of C

Economic Profile - City of Cerritos

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