Daily Business Report — Nov. 13, 2009
Business Sales Increase in October
San Diego County registered an increase in the sale of small and mid-size businesses during October, according to information compiled by BizBen.com. The figure of 129 closed sales for the month compares favorably with the monthly average of 94 sales recorded in the four preceding months, BizBen.com reported. “We’re pleased to see growth in this market. And it comes at a hopeful time when there are increases in some of the leading economic indicators,” said Peter Siegel, president and CEO of BizBen.com.
BizBen.com figures show that the city of San Diego recorded 52 closed escrows during the month, while there were 16 completed deals in Escondido. The third highest level of activity was in El Cajon with nine sales. California’s total of 1,314 businesses sold in October was a substantial improvement in activity compared to the figures posted in the June through September period, when the average was about 1,000 per month.
The report said nearly 700 businesses are for sale in the county. Totals of completed 2009 small business sales in San Diego County are as follows: Bonita: 8, Carlsbad: 40, Chula Vista: 61, Del Mar: 11, El Cajon: 75, Encinitas: 22, Escondido: 77, Fallbrook: 17, La Mesa: 45, Oceanside: 59, San Diego: 533, Santee: 33, Spring Valley: 23, Campo: 1, La Jolla: 32, Lakeside: 5, National City: 32, Poway: 25, Alpine: 9, Pauma Valley: 5, San Marcos: 20, Vista: 18, Bonsall: 1, Julian: 1, Ramona: 6, Riverside: 2, Solana Beach: 11, Coronado: 5, Descanso: 3, Imperial Beach: 4, Jamul: 5, Lemon Grove: 5, Ranchita: 2, Borrego Springs: 2, Boulevard: 1, La Costa: 1.
Best Best & Krieger Attorney Gets Presidential Appointment
Ricardo Soto, an attorney with Best Best & Krieger in San Diego, has been appointed by President Obama as the deputy assistant secretary in the U.S. Department of Education’s Office for Civil Rights. Soto, who joined BB&K’s San Diego office in 2007 as of counsel in the law firm’s school law and special education practice group, will be supporting Assistant Secretary of Education Russlynn Ali in overseeing the work conducted by the department’s civil rights office. He will be relocating to Washington, D.C. During his time at BB&K, Soto represented school districts, offices of education and other education institutions as general and special counsel in state and federal courts and before state and federal administrative agencies.
“We are very proud of Ricardo and although we will miss him, his appointment is well-deserved and the DOE has gained a fine attorney and a rising star,” said Eric Garner, BB&K managing partner.
Soto has practiced school law, with an emphasis on school accountability, charter schools, employment issues, special education and student issues, for more than ten years. He has also been involved in legal issues concerning higher education, the Fair Political Practices Act, the Brown Act and redistricting election districts.
Barnhart-Heery Gets $29.5 Million Camp Pendleton Contract
Barnhart-Heery has received a $29.5 million contract for the design and construction of a Wounded Warrior headquarters and a Wounded Warrior Hope and Care Center for Marines and sailors station at Camp Pendleton. The facilities are expected to be completed by October 2011. In February of this year, Barnhart-Heery broke ground on a $23 million Bachelor Enlisted Quarters for Marines and sailors in the Wounded Warrior Battalion West. The 66,000-square-footWounded Warrior barracks will feature 100 semi-private suites modified to accommodate service members recovering from various injuries. Barracks construction will be completed by March 2010.
Alliance Francaise Inaugurates New Center
The Alliance Francaise of San Diego (AFSD), San Diego’s first French cultural center, will inaugurate its new location in Sorrento Valley on Nov. 20 at a private event. The center is at 6640 Lusk Blvd., Suite 104. The AFSD first met in Balboa Park and later moved onto the campus of the University of San Diego. Most recently, AFSD activities and classes were held at the Lawrence Family Jewish Community Center. The AFSD offers French classes of all levels to students of all ages; and it organizes French-themed events-movie screenings, book clubs, hiking, wine tastings, concerts, dinners-that are open to San Diegans of every cultural, ethnic and linguistic background.
Latino Groups Join Forces
The Latinos in Information Sciences and Technology Association (LISTA) and the Hispanic Chamber of E-Commerce (HISCEC) have joined forces in an effort to promote the successful adoption of increased technological platforms and online business strategies among Hispanic businesses. The groups seek to bring Hispanic technology professionals together to build a community conducive to networking and sharing best practices with an emphasis on progressing Hispanic business’ use of technology. The HISCEC is an online Hispanic business association focused on promoting Hispanic businesses via the Internet and the use of e-business tools. The HISCEC facilitates transformation of small business to e-business, promotes e-commerce transactions, enables small businesses to interact more closely with customers and suppliers, allows higher degrees of specialization, provides access to national and international markets and promotes distance learning programs to educate its members.
Meetings & Conferences
Session on Restructuring — The San Diego chapter of the Association for Corporate Growth (ACG) will discuss what healthy companies need to know about restructuring at its next breakfast meeting on Nov. 17 from 7 to 9 a.m. at the Doubletree Hotel Hazard Center, 7450 Hazard Center Drive, San Diego. It’s titled “Restructuring 101 for Healthy Companies.” Attendees will learn how to recognize and protect a business from financially troubled customers and vendors and discuss opportunistic investment and acquisitions presented by the current economy. Admission is free for ACG San Diego members and sponsors, and $50 for nonmember. To RSVP, visit acteva.com. For more information, call (619) 741-7247.
Greening Borders Conference — The Joan B. Kroc School of Peace Studies at USD has convened environmental experts, policymakers, scientists and community leaders for the first bi-national conference to address environmental issues along the Mexican border. “Greening Borders: Cooperation, Security and Diplomacy” will be held from Nov. 18-20 at the School of Peace Studies and the Tijuana River Estuary Visitor Center. International negotiator and best-selling author William Ury is the keynote speaker for the conference. Ury is the co-founder of the Harvard University Negotiation Project and co-author of “Getting to Yes: Negotiating Agreement Without Giving In.” His address, titled “From the Boardroom to the Border: Negotiating for Sustainable Agreements,” is at 7 p.m. on Nov. 18 at the Joan B. Kroc Institute for Peace & Justice Theatre at USD. For more information, visit sandiego.edu/peacestudies/news/events.
Convention Center Expansion — Citizens Coordinate for Century 3 will host a breakfast dialogue on Nov. 19 on the San Diego Convention Center expansion. Registration is at 7:30 a.m. and the program runs from 8 to 9:15 a.m. in the Harborside Room at the Holiday Inn Embarcadero, 1355 North Harbor Drive in Downtown. Members of the Mayor Sanders’ citizen task force will be present. Panelists will include Bill Evans, executive vice president of Evans Hotel Group; Mike McDowell, CEO of the San Diego Lodging Industry Association; and Bob Nelson, vice chairman of the San Diego Convention Center Corp. board. The moderator will be Mark Steele, founder of MW Steele Group. Cost for the continental breakfast and program is $20 for members and $25 for nonmembers. Cost at the door is $35 for all. Tables of eight are $150. Student admission is $10. For reservations, call (619) 232-7196 or e-mail to email@example.com.
Federal Contract Awards
• Larscor General Contractors Inc., San Diego, won a $112,424 federal contract modification from the U.S. Department of Veterans Affairs’ Network 22 Logistics Office in Long Beach for the renovation/expansion of the prosthetics section under the American Recovery and Reinvestment Act.
(Source: Targeted News Service)
Green Buildings: Higher Productivity, Lower Vacancy, Higher Rents
A landmark study conducted by the University of San Diego and CB Richard Ellis Group Inc. has found that tenants in green buildings experience increased productivity and fewer sick days, and that green buildings have lower vacancy and higher rental rates. The report, “Do Green Buildings Make Dollars and Sense?”, is the product of a year-long research effort and is the largest study of its kind to date.
The research was overseen by Norm Miller, academic director and professor at USD’s Burnham-Moores Center for Real Estate and was conducted in collaboration with CBRE’s national director of sustainability,Dave Pogue, and Ray Wong, CBRE’s director of Americas research. The report’s preliminary findings will be made public today at the annual Greenbuild Conference in Phoenix and the full study is expected to be published later this year.
The research found that tenants in green buildings are more productive, based on two measures: the average number of tenant sick days and the self-reported productivity change. Respondents reported an average of 2.88 fewer sick days in their current green office versus their previous non-green office, and about 55 percent of respondents indicated that employee productivity had improved. Based on the average tenant salary, an office space of 250 square feet per worker and 250 workdays a year, the decrease in sick days translated into a net impact of nearly $5.00 per square foot occupied, and the increase in productivity translated into a net impact of about $20 per square foot occupied.
The study additionally showed that green buildings have 3.5 percent lower vacancy rates and 13 percent higher rental rates than the market.
“The results of this project are beginning to demonstrate the very real and positive impact of sustainable buildings for both our owners and tenant occupants. We have been seeking ways to make an empirical case for the economic benefits of sustainable practices and the results of this study exceeded our expectations,” said Pogue.
The research effort surveyed 154 buildings under CBRE’s management, totaling more than 51.6 million square feet and housing 3,000 tenants in 10 markets across the U.S. The study defined a green building as those with LEED certification at any level or those that bear the EPA ENERGY STAR label. All of the ENERGY STAR buildings in the survey group had been awarded that label since 2008. Most of the buildings included in the research had also adopted other sustainable practices like recycling, green cleaning and water conservation.
“This is an exciting time for the commercial real estate industry where great values and great investment upgrade opportunities coexist. This window won’t last forever,” said Miller. “We have now confirmed in this and other studies that green features and energy savings pays off. Tenants care about healthy energy efficient buildings. We also know that green leases and managing to a new and higher standard will soon become the norm. Commercial real estate players have no choice but to learn how to be better in a sustainable way. We know the economics of green will drive the market, not altruism or concern about global warming.”
The survey also indicated that 18% of tenants are willing to pay more for green space, and that tenants believe healthy indoor environments positively impact staff retention (61percent) and client image (70 percent). Additionally, 71 percdent of respondents felt that green lease provisions are increasingly important. According to the study, each additional point of ENERGY STAR rating saved 0.8-1.0 percent in electricity and separate metering yielded a 21 percent energy savings, more than any other factor. These findings are generally consistent with other research on this topic, which has determined buildings with the ENERGY STAR label, LEED certification or other identified sustainable programs generally perform better.
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