Daily Business Report — January 14, 2010
San Diego Office Market Vacancy Rate Climbs
The San Diego office market vacancy rate jumped from 17.8 percent at the beginning of 2009 to 19.2 percent at the end of the year, reports CB Richard Ellis. The overall availability rate witnessed a similar trend, increasing from 19.4 percent to 20.7 percent over the same period. After a strong fourth quarter of net absorption activity (positive 516,000 square feet), year-to-date net absorption totaled negative 95,000 square feet.
The San Diego industrial market experienced a direct vacancy rate jump from 7.8 percent at the beginning of 2009 to 9.9 percent at the end of the year, according to the report. The overall availability rate witnessed a similar trend, increasing from 12.1percent to 16 percent over the same period.
San Diego retail vacancy inched upward to 6.4 percent in the fourth quarter of 2009, compared to 6.2 percent in the third quarter and 3.4 percent this time last year. However, net absorption saw a more positive turnaround, totaling negative absorption of 81,800 square feet, compared to negative 434,000 square feet in the third quarter.
San Diego Home Sales Rise
Home sales in San Diego in December increased substantially from the previous month while the median price of a home deviated slightly, reports the San Diego Association of Realtors. Sold listings increased by 18 percent for detached homes and 6.7 percent for attached properties. The median sales price for detached homes also increased 2.7 percent from November while the median sales price for attached homes decreased slightly by 3.2 percent.
For 2009 overall, home sales increased 16.5 percent for detached and attached homes increased 17.8 percent.
Despite recent increases, year-to-date median sales prices decreased from 2008.The median sales price for detached properties in 2009 was $355,000 compared to $400,000 in 2008, which is an 11.3 percent decrease. For attached properties, the median sales price in 2008 was $245,000 while in 2009 it was $205,000, a 16.3 percent decrease. Meanwhile, comparing December 2009 to the same time in 2008, there was a large increase of 10.2 percent for detached properties and 7.5 percent for attached.
“We are pleased that sales in 2009 were up significantly over the previous year,” said Mark Marquez, SDAR president. “Clearly, consumers are taking advantage of the tax credit, low interest rates, an ample supply of short sale properties, as well as the great deals in our market. Although the median sales price decreased since 2008, we remain optimistic after seeing an upward trend in median sales for the last six months of 2009. With such limited inventory available, we expect to see median prices continuing in that direction.” Highlights:
Total Sold Listings Comparing December 2009 to November 2009
• Detached: 18.1 percent increase
December 2009 = 1,856 November 2009 = 1,571
• Attached: 6.7 percent increase
December 2009 = 940 November 2009 = 881
Total Sold Listings Comparing December 2009 to December 2008
• Detached: 16.4 percent increase
December 2009 = 1,856 December 2008 = 1,594
• Attached: 11.1 percent increase
December 2009 = 940 December 2008 = 846
Total Sold Listings Comparing 2009 to 2008
• Detached: 16.5 percent increase
2009 = 22,243 2008 = 18,686
• Attached: 17.8 percent increase
2009 = 11,773 2008 = 9,787
Median Sales Price Comparing December 2009 to November 2009
• Detached: 2.7 percent increase
December 2009 = $385,000 November 2009 = $375,000
• Attached: 3.2 percent decrease
December 2009 = $215,000 November 2009 = $222,000
Median Sales Price Comparing December 2009 to December 2008
• Detached: 10.2 percent increase
December 2009 = $385,000 December 2008 = $349,450
• Attached: 7.5 percent increase
December 2009 = $215,000 December 2008 = $200,000
Annual Median Sales Price Comparing 2009 to 2008
• Detached: 11.3 percent decrease
2009 = $355,000 2008 = $400,000
• Attached: 16.3 percent decrease
2009 = $205,000 2008 = $245,000
Jim Spain Takes Colliers Regional Manager Post
James E. Spain has been named regional managing director of Colliers International, responsible for directing day-to-day operations of Colliers’ four regional offices in UTC, Downtown San Diego, Carlsbad and Temecula. He will take over from James Zimsky, who announced his plans to retire. Spain has been affiliated with Colliers International since 1982, first as an industrial land and business park broker and then as the managing director of the Carlsbad office. During his career, he has received numerous awards including Collier’s International Award of Excellence and Top Producer multiple years. Spain began his commercial real estate career at C. W. Clark Inc. in 1981. He earned a law degree from the University of San Diego School of Law and is a University of Santa Clara graduate. Spain holds the Society of Industrial and Office Realtors (SIOR) designation based on knowledge, production and ethics. He is a San Diego board member of the National Association of Industrial and Office Parks where he served as chapter president in 1996. He also served as a commissioner with the city of Oceanside Economic Development Commission.
El Cajon Church Sold for $1.76 Million
Iglesia Ni Cristo, a Christian organization that originated in the Philippines and is the largest independent church in Asia, has purchased a church facility at 401 Broadway in El Cajon for $1.76 million. Christian Missionary Alliance was the seller. Built on a 1.11-acre lot at the southeast corner of Broadway and Ballantyne Street, the 11,000-square-foot facility features a traditional church building with recent upgrades, four classrooms, nursery, choir room, kitchen, fellowship hall and library. Eric Knowles of CB Richard Ellis represented the seller. Iglesia Ni Cristo represented itself.
In-N-Out Burger to Open New Escondido Drive-Through
In-N-Out Burger has purchased a 1.17-acre lot at 1260 West Valley Parkway in Escondido for $2.1 million. The restaurant chain is scheduled to open a new drive through location in the spring. The vacant lot is located across the street from Escondido Promenade Shopping Center and adjacent to Coco’s Restaurant, Del Taco and Comfort Inn. The site is the former location of Fogarty’s Pub, a bar and nightclub that burned down several years ago. In-N-Out planned to open a restaurant in Escondido in 1991 but a dispute over freeway signage compromised the project on El Norte Parkway. In October 2009, the Escondido City Council approved a sign package, clearing the way for In-N-Out to proceed with the new restaurant on West Valley Parkway. Reg Kobzi of CB Richard Ellis represented the seller, Pacifica Companies. John Horning of Flocke & Avoyer represented In-N-Out Burger.
Marrokal Firm Wins International Honor
Marrokal Design & Remodeling, a San Diego-based home remodeling firm, has been honored for ethical business practices on an international level from the Council of Better Business Bureaus, the parent organization for the worldwide Better Business Bureau network. After winning a San Diego BBB Torch Award for Marketplace Ethics in 2008, Marrokal’s entry was forwarded to the CBBB for the 2009 international competition. Marrokal was one of 19 companies considered in the semi-finalist round of competition from the original pool of 65 entries, and only five of them were selected as finalists. In 2006, Callaway Golf Co. was an international winner, and Charco Construction Co. was declared a finalist. In 2003, Roel Construction Co. received an honorable mention, while Coles Fine Floor was presented with a finalist award.
Sharp HealthCare’s Bill Spooner Named CIO of the Year
Bill Spooner, CIO of Sharp HealthCare, a seven-hospital system in San Diego County, has been named CIO of the Year by the College of Healthcare Information Management Executives and Healthcare Information and Management Systems Society for his lifetime achievements in the health care IT industry. Most recently, Spooner spearheaded the implementation of an electronic medical record at Sharp. The award is presented to individuals who “demonstrate innovative leadership through effective use of technology in support of the strategic initiatives of his/her organization,” according to the award criteria. Spooner will receive the award at the annual HIMSS Conference and Exhibition in Atlanta on March 2. “Bill has been Sharp’s CIO for nearly 15 years, and he has continuously demonstrated innovative IT leadership,” said Mike Murphy, president and CEO of Sharp HealthCare. “Most recently, in addition to overseeing Sharp’s EMR efforts, Bill and his team also successfully integrated a host of IT projects at the new Stephen Birch Healthcare Center at Sharp Memorial Hospital, making it our first paper-light facility.”
Forum on Social Media Marketing Set for Feb. 24
A Feb. 24 forum on social media marketing will feature social media strategist and coach Jason Baer, who will lead a panel discussion on the topic. Sponsored by LEAD San Diego and Bailey Gardiner. Continental breakfast and networking will be at 7:30 a.m., the presentation by Baer will be at 8 a.m. and a Baer-led panel discussion will be at 8:45 a.m. The forum will be in USD’s Joan B. Kroc Theatre, San Diego. General admission is $20. LEAD San Diego members are $15. For more information, call (619) 280-5323.
SDSU Offers Business of Wine Program
“Exploring Wine” will be the first of five courses SDSU’s College of Extended Studies will offer as part of its Professional Certificate in the Business of Wine program during the spring semester. The course will be taught on Tuesdays between Feb. 9 and March 9 (6 to 9 p.m.) and will include such topics as history, grape varietals, viticulture, language and labeling and tastings. The cost is $295, or $325 after Feb. 2. Many students have taken these certificate programs in preparation to work in wine-related occupations. A majority of classes are held at restaurants and wineries to enable students to discover the behind-the-scenes workings in the wine business. Among the program’s features are guest speakers from within the wine industry who offer their expertise during each course. In order to earn a certificate, students must complete five courses at their choosing.
The certificate series is targeted to restaurant managers, owners, entrepreneurs, winery employees, event planners, bartenders, bar managers, distribution and retail sales employees, wine enthusiasts and anyone interested in moving into hospitality careers. Students must be 21 years of age to register for this program.
Spring courses following the “Exploring Wine” program include: Dynamic Wine and Food Pairing I, Saturday, March 13, 9 a.m.-4:30 p.m.; Wine List Creation and Service Management, Mondays, March 15-April 5, 6-9 p.m.;
Dynamic Wine and Food Pairing II, Saturday, April 10, 9 a.m.-4:30 p.m.;
Bottle to Glass: From Winery to Consumer, Mondays, May 3-24, 6-9 p.m.
For more information on the certificate program, call (619) 594-6924.
Federal Contract Awards
• Waste Management in El Cajon won an $18,223,525.26 federal contract from the U.S. Naval Facilities Engineering Command, San Diego, for refuse and recycling collection and disposal.
• Sleep Data Inc. in San Diego won a $695,762.30 federal contract from the U.S. Department of Veterans Affairs’ Network 22 Logistics Office, Long Beach, for medical services.
• ECADware LLC in Escondido won a $245,743 federal contract from the U.S. Naval Air Systems Command in China Lake for Mentor Graphics printed circuit board design software.
• RBF Consulting in San Diego won a federal contract valued at up to $20,000 from the U.S. Naval Facilities Engineering Command, San Diego, for civil engineering services. (Source: Targeted News Service)
Bill Walton to Lead New Sports and Entertainment Venture
CONNECT, the nonprofit organization that promotes the growth of San Diego’s high-tech and life science industries, is “incubating” a new sports and entertainment trade organization and has chosen basketball Hall of Famer Bill Walton to lead it as executive chairman. Although there are more than 600 sports and entertainment companies in San Diego, no trade organization until now has existed to help them, said Duane Roth, CEO of CONNECT. “Walton and a dynamic team of successful sports and entertainment leaders have mobilized behind this effort,” said Roth. “Thanks to their leadership and vision, young companies will now get real expert assistance with the many challenges of the sports and entertainment business economy like financing, consumer buying trends, patent protection, innovation, or outsourcing.” Walton is a San Diego native who starred at UCLA and in the NBA.
Walton is to build on CONNECT’s success pioneering the growth of San Diego’s high-tech and life sciences clusters in San Diego over the past 25 years. He’s also modeling the effort on CONNECT’s successful incubation and spin-out of BIOCOM, CommNexus and, most recently, CleanTECH San Diego, which became independent of CONNECT two years ago.
”I’m passionately committed to helping local sports and entertainment companies grow and thrive in the competitive global economy,” said Walton. “Our local companies need to be the leanest, greenest and cleanest, the most innovative and the smartest to succeed at the highest levels. We’re known around the world as the sports and entertainment innovation capital. It’s time we bring everything we have to helping these industries. We are here to stay. We plan to play at the highest levels in the biggest of games. We intend to win. We are going to make a difference.”
Walton was a basketball star at Helix High School and became the only high school basketball player to ever make the USA Senior Men’s National Team and play in either the World Championship or Olympics. At UCLA, he was a member of the record-setting and multiple champion Bruins under Coach John Wooden. In the NBA, Walton was also a multiple champion, a two-time MVP and was selected as a member of the NBA’s All Time Team.
A number of industry leaders have been recruited as advisers to the sports and entertainment trade group. Co-chairs of the group include Ludo Boinnard, founder and former CEO of ONE Industries and an off-road motocross rally racer; Dana Shertz, former president/COO of MacGregor Golf and former vice president of sales at Callaway Golf; and Marco Thompson, managing director of Express Ventures, who originally conceived of the effort.
“The sport and entertainment industries are increasingly about innovation and also clean technology wetsuits made of limestone, surf boards out of green foam, golf clubs from composite materials are just a few examples,” said Thompson. It’s time we brought together our expertise in high tech with our success in sports and entertainment innovation.”
Other industry leaders on the board include: Michael Brower, GM of Power Metal Technologies Inc., former CFO of Range 21, the owner of Spy Optic and former GM of Odyssey Golf; Brian Enge, CEO of Zoot Sports, which was recently acquired by K2 Sports; Tony Finn, founder of LiquidForce and inventor of the wakeboard; Bob Rief, COO of C4 Waterman and Boardworks Surf, former CEO of Sanuk and Reef and former GM of Nike Golf and Merrell Hiking Boots; John Sarkisian, CEO of SKLZ; Mark Schmid, CEO of Form Function Technologies and former owner of Syndrome Distribution and Pro Skate Products; Jim Stroesser, former CEO of Pony; and Peter Townend, former co-owner of Converse.
The law firm Sheppard Mullin Richter & Hampton and Security Business Bank are founding partners of the program. Sheppard Mullin Managing Partner Richard Kintz serves on the advisory board.
REAL ESTATE PANEL: Residential real estate leaders will gather for an annual forecasting event at 5 p.m. at the Del Mar Hilton, 15575 Jimmy Durante Blvd., Del Mar. The program, “Positive Again in 2010,” is presented by the Sales & Marketing Council of the San Diego Building Industry Association. Moderated by Pete Reeb of Reeb Development Consulting. Cost is $65 for BIA members and $85 for nonmembers. Dinner, 6 p.m., program, 7 p.m. For more information or to register, visit http://www.biasandiego.org/eventsupcoming.php?key=91 or call (858) 450-1221, Ext. 101.
WORKSHOP: CONNECT workshop on “Establishing an Effective Bioscience IP Portfolio,” held in partnership with Pillsbury Winthrop Pittman Shaw LLP. The workshop will cover basic elements of developing a commercially meaningful intellectual property portfolio for a bioscience company. 8 a.m. to 1:30 p.m., offices of Pillsbury Winthrop Shaw Pittman,
12255 El Camino Real, Suite 300, San Diego. Light breakfast will be provided; optional lunch. $45. For more information, call (858) 964-1312.
PRESENTATION: Jeff Morgan, president and CEO of the National Investor Relations Institute (NIRI), speaks to the San Diego NIRI chapter at Leap Wireless, 5887 Copley Dr., San Diego. Networking reception at 5 p.m. presentation, 5:30 to 7 p.m. Morgan will speak on the NIRI and the state of the industry. Admission is $45 for members and $60 for nonmembers if registration is received before 5 p.m. on Jan. 11. The cost for late or on-site registrations is $55 for members and $70 for nonmembers. Register by e-mail at: email@example.com.
BREAKFAST TALK: Jeff Moorad, vice chairman and CEO of the San Diego Padres, will give a talk on the recent Padres franchise deal at the Jan. 19 meeting of the San Diego chapter of the Association for Corporate Growth. It will be from 7 to 9 a.m. at the Doubletree Hotel Hazard Center, 7450 Hazard Center Drive, San Diego. ACG San Diego members are free; others are $50. To reserve, visit acteva.com/go/acgsd. For more information, call (619) 741-7247.
FORUM: San Diego Mayor Jerry Sanders will discuss past, present and future city government reforms that will shape the region in NAOP San Diego’s fourth annual Breakfast with the Mayor program. Marriott San Diego/Del Mar, 11966 El Camino Real, San Diego. Registration at 7:30 a.m., program runs from 8 to 9:15 a.m. $40 for members, $60 for nonmembers. Attendees may pay online at naiopsd.org. NAOP San Diego is a chapter of the Real Estate Development Association.
SEMINAR: The San Diego Direct Marketing Association presents the “2010 Marketing Trends” seminar featuring five speakers talking on marketing trends. Designed for marketing executives, PR directors, sales managers, marketing service providers. 8 a.m. to 1 p.m., Alliant University, 10455 Pomerado Road, San Diego. $79 for members, $99 for nonmembers and $59 for students.
WORKSHOP: “Unlocking the Secrets: the Power of Strategic Alliances” sponsored by the San Diego Regional Chamber of Commerce. A 90-minute training course to be successful in the chamber’s complementary referral program, the Business Alliance. Chamber HQ, 402 West Broadway, Suite 1000, San Diego. No charge. Reservations required. To reserve, e-mail Erin Chapman at firstname.lastname@example.org or call (619) 544-1382.
CONFERENCE: San Diego Society for Human Resource Management’s annual Law Day Conference focuses on employment law, compliance and legislative issues facing today’s workplace. 7:30 a.m. to 3:30 p.m., Hilton La Jolla Torrey Pines, 10950 North Torrey Pines Road, La Jolla. $129 for members, $189 for nonmembers. To reserve and for more information, visit sdshrm.org or acteva.com/go/sdshrm.
FORUM: “TelCentris: Generating Revenue from a Market Used to ‘Free,’”
5 to 8 p.m. Salk Institute, 10010 North Torrey Pines Rd., La Jolla. Sponsored by MIT Enterprise Forum San Diego. For more information, visit sdmitforum.org.
LUNCHEON: San Diego County Taxpayers Association sponsors a luncheon with San Diego City Attorney Jan Goldsmith. Registration 11 a.m. to noon, lunch and program noon to 1:15 p.m., California Ballroom, Town and Country Resort, 500 Hotel Circle, Mission Valley. $35 for members, $45 for nonmembers. Register online at sdcta.org/Events/Event.asp or RSVP with Amy Harris at (619) 234-6423.
LUNCHEON: Lawyers Club of San Diego monthly luncheon, noon to 1:15 p.m., Bristol Hotel, 1055 First Ave., Downtown San Diego. Doors open at 11:45 a.m. Members $25. Nonmembers $30. Make reservations to email@example.com.
LUNCHEON: Annual installation luncheon of the Downtown San Diego Partnership. 11:30 a.m. check-in, program at noon, Hard Rock Hotel, Downtown San Diego. For information, call Sheri Snead, (619) 234-0201 or e-mail her at firstname.lastname@example.org.
WORKSHOP: Presentation workshop sponsored by BIOCOM, 8:30 a.m. to 5 p.m., at BIOCOM, 4510 Executive Drive Plaza 7, San Diego. Provides opportunity for practice, feedback, videotaping and one-on-one coaching for each participant. Each participant will present three times, be videotaped and receive group and one-on-one feedback. For information, call Kristie Grover, (858) 455-0300.
PANEL TALK: Citizens Coordinate for Century 3 hosts a breakfast dialogue, “Are the Tides Turning on Equity and Environmental Justice in San Diego Planning?” Harborside Room, Holiday Inn Embarcadero, 1355 North Harbor Drive, Downtown San Diego. Registration 7:30 a.m. Program runs from 8 to 9:15 a.m. Cost for the continental breakfast and program is $20 for members and $25 for nonmembers. Cost at the door is $35 for all. Student admission is $10. For reservations, call (619) 232-7196.
WORKSHOP: “Unlocking the Secrets: The Art of Giving a Presentation,” a training course sponsored by the San Diego Regional Chamber of Commerce. 8 to 9:30 a.m., San Diego Regional Chamber of Commerce, 402 West Broadway, Suite 1000, San Diego. Learn how to show off what you do and share what makes your business, product or service unique. For more information, call (619) 544-1382.
WORKSHOP: The San Diego chapter of the International Association of Business Communicators holds a special workshop/learning session on “The New Rules of Engagement: How Communicators Shape Leaders’ Thoughts and Actions.” Speaker is Mark Schumann, principal of Towers Perrin and 2008-09 chair of the IABC. 11:30 a.m. to 1 p.m., learning session and lunch; 1 to 2 p.m., roundtable workshop. Doubletree Hotel San Diego/Mission Valley, 7450 Hazard Center Drive, San Diego. Register by Jan. 21 and its $40 for members, $50 for nonmembers. Register afterwards, its $50 and $60, respectively.
CONFERENCE: The Burnham-Moores Center for Real Estate’s 14th annual Real Estate Conference will feature real estate icon Sam Zell. Panels will discuss “The Shape of Things to Come: Capital Markets” and “The Shape of Things to Come: REITS, Retail, Development and Loan Workouts.” 7:30 a.m. to noon, Hilton San Diego Bayfront. To register, visit sandiego.edu/bmcevent. For more information, call Diane Gustafson at (619) 260-2379.
ANNUAL DINNER: The 139th annual dinner of the San Diego Regional Chamber of Commerce, 5-8 p.m., Town and Country Resort & Convention Center, 500 Hotel Circle North, Grand Exhibit Hall. $150 individual registration. Highlights include induction of the 2010 chairman of the board, Tom Wornham of Wells Fargo, and the board of directors, and presentations of the Spirit of San Diego, Courageous Leadership and Regional Unity awards. For more information, call Katie at (619) 544-1370.
MEET THE LEADERS: Vista Chamber of Commerce host reception and dinner featuring talks by Congressman Darrell Issa, Assemblyman Martin Garrick and county Supervisor Bill Horn. 6:30 to 9:15 p.m., Shadowridge Country Club, 1980 Gateway Drive, Vista. Tickets are $125 per person. Contact the Vista Chamber of Commerce at (760) 726-1122.
CELEBRATION: The Asian Business Association of San Diego holds its 16th annual Lunar New Year Celebration featuring Lucky Lion Dancers, a casino night with prizes and Chinese cuisine. 5:30 to 8:30 p.m., dinner from 6:15 to 7:15 p.m., no-host bar, Fat City Steakhouse/China Camp Restaurant, 2137 Pacific Coast Highway, San Diego. Cost: before Feb. 16, $30 to ABA members, $35 for nonmembers; at the door, $40 members and nonmembers. Register online at abasd.org. For more information, call (858) 277-2822.
DIGITAL FORUM: A forum on social media marketing will feature social media strategist and coach Jason Baer, who will lead a panel discussion on the topic. Sponsored by LEAD San Diego and Bailey Gardiner. 7:30 a.m., continential breakfast and networking; 8 a.m., presentation by Baer; 8:45 a.m., panel discussion. USD’s Joan B. Kroc Theatre, San Diego. $20 general admission, $15 for LEAD San Diego members. For more information, call (619) 280-5323.
WORKSHOP: The San Diego chapter of the American Society of Interior Designers sponsors a “Day with Designers,” a public workshop to provide information on practical interior design basics and how to select an interior designer, among other tips. 9 a.m. to 2 p.m. at the Art Institute, 7650 Mission Valley Road, San Diego. Advanced tickets available for $35 by visiting ASIDSanDiego.org. Tickets at the door are $45. For more information, call (858) 646-9896.
The Daily Business Report is produced by REP Publishing Inc., publisher of San Diego Metropolitan magazine and the North Park News. (619) 906-4104.