Daily Business Report — Nov. 2, 2009
Industrial Market Records Negative Absorption
San Diego County’s industrial market recorded 1,088,669 square feet of negative absorption in the third quarter, bringing year-to-date absorption to 3.3 million square feet, according to a report by Grubb & Ellis|BRE Commercial. In the third quarter, manufacturing space accounted for 13.1 percent of the returned space to the market compared to 43.0 percent in the second quarter. Distribution space accounted for 57.0 percent of the total space returned to the market this quarter compared to 27.0 in the second quarter.
• Vacancy Rates: The countywide direct vacancy rate of 10.1 percent recorded in the third quarter gained 70 basis points from the second quarter of 2009 and 300 basis points from a year ago. The sublease vacancy rate of 1.9 percent increased 10 basis points from the second quarter but increased 90 basis points from a year ago resulting in a combined countywide industrial vacancy rate of 12.0 percent in the third quarter. Note that South County at 12.0 percent recorded the highest direct vacancy rate compared to North (10.8 percent) and Central Counties (8.8 percent). Countywide, direct vacancy rate has increased 250 basis points for R&D space, 250 basis points for manufacturing space, 340 basis points for IMT space and 360 basis points for distribution space compared to the third quarter of 2008.
• Asking Rent: The countywide average asking rental rate for all product types was $0.92 per square foot per month triple net (NNN) in the third quarter unchanged from the second quarter and $0.08 less than a year ago. In the third quarter of 2009, asking rents decreased $0.15 for R&D space, $0.11 for IMT space, $0.06 for manufacturing ($0.79) and $0.02 for distribution ($0.66) space compared to a year ago.
• Construction Activity: There are currently 246,050 square feet under construction countywide representing a nominal 0.14 percent of the total countywide industrial inventory of 172.7 million square feet. The construction activity is almost equally split between North (47.2 percent) and South (52.8 percent) Counties with no construction activity in Central County. The disciplined addition of new space should help San Diego’s industrial market cope with the recession and keep vacancies under control.
City of Chula Vista Lauded for High Energy Efficiency
By achieving high energy efficiency and greenhouse gas reductions, the city of Chula Vista has become the first city to join the Cool Planet Project, a program hosted by San Diego Gas & Electric and The Climate Registry. Through programs provided by SDG&E and sponsored by the California Public Utilities Commission, the city installed energy efficiency projects on facilities throughout the city, reducing municipal energy use by more than 1.2 million kilowatt-hours and 50,000 therms — equivalent to removing more than 200 cars from Chula Vista’s city streets annually. “We are committed to making a positive difference to our environment and leading by example,” said Mayor Cheryl Cox.
Business customers of SDG&E who achieve significant energy savings through the installation of energy efficiency projects qualify for the Cool Planet Project. Participants of the program receive a complimentary year of membership to The Climate Registry, enabling them to measure, third party verify and publicly report their greenhouse gas emissions profile. “The city of Chula Vista has taken a forward-thinking approach to their energy efficiency and environmental stewardship efforts,” said Mark Gaines, director of customer programs for SDG&E.
Councilman Steve Casteneda said the SDG&E program has assisted over more than 800 local businesses and 2,000 residents in lowering their monthly energy costs and reducing their annual energy consumption.
Chula Vista also is the first city in San Diego County to receive the “Climate Action Leader” designation by the California Climate Action Registry, The Climate Registry’s sister organization. The designation is given to local governments and businesses who successfully build their greenhouse gas emissions inventory according to protocol, measuring, third-party verifying, and publicly reporting their overall footprint to the Registry.
Panelist to Discuss Job Prospects for ‘Generation Y’
Are “Generation Y” college students ready to enter the workforce after college? Carl Winston, director of SDSU’s School of Hospitality and Tourism Management, will explore that issue with other experts at a Nov. 13 panel program from 8:30 to 10:30 a.m. at the university’s Extended Studies Center. Winston says he has seen a dramatic shift in the way college students are now approaching the job market. “What I’m seeing and hearing is a profound change.” he said. “They have lived through the great recession of the past 18 months. You are seeing 20-year-olds wanting to get their foot in the door. They are looking for job security and working their way up the ladder.”
Other panelists will be James J. Tarbox, director of SDSU Career Services, and Bryan Lubic, manager of Aztec Business Alliance at the SDSU College of Business Administration.
Tarbox says SDSU has many attendees who are first-generation college students and that they do not all have baby boomers for parents, despite such an assumption from the general public. He adds that as millennials, current students have been brought up to compete and be recognized for their accomplishments.
For more information, call (619) 594-1138 or visit neverstoplearning.net/tde.html.
Community Managers Get Statewide Recognition
Eleven community manager association managers from San Diego County have been awarded the statewide designation of “Certified Community Association Manager” (CCAM) — given to managers who have completed an educational curriculum program and fulfilled work experience requirements. The number is a record for the San Diego area.
The San Diego managers are Terri Markham with Pernicano Realty & Management Inc. in San Diego; Samantha Lemieux with Menas Realty Company in San Diego; Christie Brennan with Mar West Real Estate in Del Mar; Joann Pucello with Merit Property Management Inc. in San Diego; David Barrack and Teresa Ramirez with Castle Breckenridge Management in La Mesa; Pamela Gault with Coronado Shores Condominium Owners Association in Coronado; Robert Griswold with Griswold Real Estate Management in San Diego; Vicki Harvey with N.N. Jaeschke Inc. in San Diego; Gayla Weldon with Transpacific Management Service, a division of The Management Trust in San Diego; and Angelic Luna with Packard Management Group in San Diego.
Law Firm Founder named Lawyer of the Year
Yuri Calderón, co-founder and managing partner of corporate San Diego law firm GCR LLP, has been named San Diego La Raza Lawyers Association Lawyer of the Year for his service to the local Latino community and GCR’s commitment to diversity. Calderón serves the Latino community as a member of the executive board of the National Hispanic Bar Association and has worked as general counsel to different Latino organizations including The San Diego Hispanic Chamber of Commerce, California Latino School Board Association and he is currently the general counsel to the Latino Caucus of the League of California Cities.
Devon DeMars Joins (W)right On Communications
(W)right On Communications Inc., a communications firm with offices in Solana Beach and Vancouver, has hired Devon DeMars as account coordinator to support the agency’s client roster in the technology, hospitality, education, aviation, retail and nonprofit sectors. DeMars has in-house public relations experience, including work supporting celebrity accounts to developing communication and social media strategies for small businesses and nonprofits in Los Angeles and San Diego. An Oregon native, Devon pursued her studies at the University of Southern California’s Annenberg School for Communication. She graduated Magna Cum Laude in 2009 with a bachelor’s degree in public relations and minors in Spanish and business.
SAIC Names General Manager
Science Applications International Corp. has appointed Rex Ballard as general manager for SAIC’s Commercial Business Services Business Unit. A long-time SAIC executive, Ballard has served as acting business unit general manager since July. Ballard has been with SAIC for almost 21 years serving in a variety of executive positions. Most recently he was senior vice president of operations responsible for the oversight of all aspects of solution development and global service delivery for a $500 million information technology services and outsourcing organization. Prior to joining SAIC, Ballard held leadership positions with Cubic Corp.
Mexican Students Complete Architectural Program
Twenty-eight students at Universidad del Valle de Mexico (UVM) in Queretaro, Mexico, completed a pilot program in architectural studies with NewSchool of Architecture and Design (NSAD) in San Diego. The program at UVM launches an effort to share NSAD’s faculty expertise and curriculum best practices with students worldwide. Both schools are members of the Laureate International Universities network. Faculty from NSAD led courses on the UVM campus in digital modeling and rendering for building design, as well as a workshop on design and innovative presentation techniques. Students participating in the courses designed physical models, graphic presentations and videos, and they presented their projects in English during an awards ceremony held at the end of the program. Participants were awarded certificates of completion by representatives from both institutions and received credit toward their degree programs. The students, who came from five UVM campuses, are pursuing degrees in architecture, graphic design, industrial design and fashion design.
• Alignment Express of California Inc. in San Diego won a $1,085,403.64 federal contract from the U.S. Army’s Contracting Command in Fort Irwin, Calif., for a F750 MOGAS truck, an international water truck trailer mounted MOGAS fuel tank, service and maintenance.
• San Diego Precast Concrete Inc. dba U.S. Concrete Precast in San Diego, won a $109,328.32 federal contract from the U.S. Army Contracting Command in Fort Irwin, Calif., for concrete vaults.
Museum of Contemporary Art Receives $75,000 Grant
The Museum of Contemporary Art San Diego has received a grant of $75,000 in support of youth education programs, awarded by The Hearst Foundations. Among the programs benefiting from this grant are MCASD’s Teen Art Council and teen programs, school programs including MCASD After School, and the touring programs led by MCASD Gallery Guides. MCASD opened the Joan and Irwin Jacobs Building and David C. Copley Building in January 2007 — which virtually doubled the museum’s program and exhibition space. The grant from The Hearst Foundations will allow MCASD to sustain its education programs for youth.