Chuck Ponzi June 14th, 2006

An article in the OC Register yesterday tells us of the current bloodbath in OC employment. You may surprised to find out that 1,140 Mortgage Jobs in O.C. Cut in the last 3 months.

This is a hangover for the people involved, but also in the commercial properties space.

ACC’s layoffs are effective July 7, although they were announced in May, according to the state’s Employment Development Department and the company. Most cuts are in Orange and Anaheim, and more than 100 are in Irvine.
Encore Credit, a unit of Irvine-based ECC Capital, cut 101 jobs in Irvine, effective June 9. Acoustic Home Loans eliminated 203 jobs in Orange, when it closed for good in April.
All the layoffs come on top of previous job cuts at the beginning of the year.

The worst part of this for commercial properties?

Now, mortgage companies are suddenly looking for companies to take about 1 million square feet of office space off their hands, according to brokers.

and…

Still, Royce Sharf, who heads local operations for brokerage Studley, said space from ACC is coming on the market just as ConAgra Foods is leaving about 260,000 square feet in Irvine. The combination is like having two or three office buildings hit the market at once, he said.
“That’s going to have an effect,” Sharf said

Never post anything negative without some spin…

Simon Dillon, a broker with CB, said all the sublease space will take some pressure off the market.
“It’s actually a healthy thing,” Dillon said.

Please tell that to the people who lost their jobs.

All reminiscent of a post I made just over a year ago… Jobs, Jobs, Jobs, Recovery to Crash

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