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Saturday, Feb 4, 2023

Score One For the Valley

It may not make a huge impact on a region as big as the San Fernando Valley, but it’s good to see a new public company establish its headquarters here. That’s the opinion of economist Mark Schniepp following the decision this month by California Resources Corp., the Occidental Petroleum Corp. spinoff, to set up its offices in Chatsworth. “The San Fernando Valley has more than 700,000 jobs, so a few hundred more doesn’t make a big difference. But there is a psychic impact when a company stays in California – especially an oil company,” said Schniepp, director of the California Economic Forecast, a Santa Barbara consultancy. CRC had been located in the longtime Westwood offices of Occidental, which moved to Houston last year to focus on its assets in Texas. California Resources was left with all the California fields and had been weighing options for months. Long Beach, Santa Clarita and Bakersfield also were vying for the headquarters location. The company is moving to 9200 Oakdale Ave., where it has leased 42,000 square feet on two floors. It also leased 21,000 square feet at 27200 Tourney Road in Valencia to house its engineering and geosciences units. “They looked at the Valley as a very central location for their operations, which stretch from Bakersfield to Long Beach,” said Kevin Fenenbock, senior vice president at Colliers International, who brokered the Valencia deal. The move also highlights the attractions of the North Valley submarket, where the roughly $2 a square foot rental rates come with ample free parking. By comparison, congested Ventura Boulevard in Sherman Oaks and Encino is up to $3.15 a square foot. The downside is that amenities are not easily walkable. “You’re getting in your car to go to Starbucks, but they’re close enough that these corporations can present a pretty good business case for being there,” Fenenbock said. – Karen E. Klein

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