Daily Business Report — Jan. 14, 2011
Destination San Diego
Consistently ranked as a top vacation destination, San Diego boasts beautiful weather year round, gorgeous beaches, mountains, desert and our very own wine country. With so much to offer, one has to think long and hard for a reason to vacation elsewhere. When the answer escapes you, skip the long lines at the airport and look no further than your own backyard for your next vacation. Read about the spots in the January issue of SD METRO.
Navy Releases Silver Strand Training Report
The Navy has released the final environmental impact statement for the Silver Strand Training Complex, a proposed training area for amphibious, special warfare, mine countermeasures and near-shore operations. The Navy proposes to improve the availability and quality of training at Naval Air Station North Island. It proposes to increase the training tempo at the complex, conduct new types of training and introduce new equipment. The final report is available for review online at silverstrandtrainingcomplexeis.com, at the Coronado Public Library, 640 Orange Ave., or the Imperial Beach Branch Library at 810 Imperial Beach Blvd.
Kitchell Corp. Consolidates County Offices
The Kitchell Corp., a construction and development company based in Phoenix, has consolidated its offices in the county to a new Del Mar location at 853 Camino Del Mar. other California Kitchell offices are in Santa Barbara, Sacramento, Ontario, Fresno and San Jose. ‘Over the past three decades we have served public and private sector clients in Southern California, from several different offices,” said Kitchell Vice President Don Glatthorn. “With this new consolidated location, our clients will gain a greater understanding of our footprint and capabilities.” Kitchell’s current and future California projects include Sharp Chula Vista Cancer Center, UCSD Davis Jacobs Medical Center, UCSD Hillcrest Emergency Department, Administrative Office of the Courts Project Management, Children’s Hospital Los Angeles, Los Angeles Unified School District, Marian Medical Center, Palm Desert Sheriff’s Station, Pomona Unified School District, Riverside School for the Deaf, San Bernardino Community College District and Santa Monica Food Co-Op.
Real Estate News
• School District Purchases Office Building
Del Mar Union School District has purchased a 10,953-square-foot office building at 11232 El Camino Real for $4,326,435. The district will use the ground floor of the building for its district office after relocating from its current location on 9th Street in Del Mar. Paul Lafrenz, Paul Komadina, Christina Roush, Ryan Egli and Pat Collins of CB Richard Ellis represented the seller, Torrey Hills LLC. Chuck Wasker of Colliers International and Mark Kagan of Tenant Rep Real Estate represented the school district.
• Grubb & Ellis Co. Relocates
Grubb & Ellis Co. has relocated its San Diego office to the fifth floor of 4250 Executive Square in La Jolla, a sister building to its previous location in Executive Square. The company more than tripled its space in the move, leasing approximately 9,600 square feet. Grubb & Ellis will operate its San Diego office from Suite 500. The phone number remains (858) 875-3600. The office houses Grubb & Ellis’ 23 local brokerage professionals.
• Miramar West Auto Center Sold
Miramar West Auto Center at 6620 Miramar Road in San Diego has been sold for $3,190,000. Sam Hanna, an investment specialist in Marcus & Millichap’s San Diego office, had the exclusive listing to market the property on behalf of the seller, a regional developer. The property is 100 percent occupied by four tenants.
• Hamilton Ranch Estates Opened
San Diego-based Galey Homes has opened Hamilton Ranch Estates, the company’s fifth residential development project in Escondido. Homes start at $729,000. Hamilton Ranch Estates provides seven single-level estate homes ranging from 3,558 to 3,985 square feet and up to five bedrooms and 4.5 baths.
San Diego Office Market Improves
The San Diego office market slightly improved during the fourth quarter of 2010, according to a report by Cassidy Turley BRE Commercial. The countywide direct vacancy rate of 16.9 percent decreased 20 basis points from 17.1 percent recorded in the third quarter and 50 basis points from 17.4 percent recorded a year ago. The 2.4 percent sublease vacancy rate remained unchanged from last quarter yet decreased 130 basis points from 3.7 percent recorded a year ago.
According to the Cassidy Turley BRE Commercial report, submarkets that saw the greatest decrease in direct vacancy rate — more than a five percentage point decrease from a year ago — are Governor Park, Rancho Bernardo, Sorrento Valley, National City and Encinitas. Among submarkets that posted a 1 to 5 percentage point decrease in vacancy rate from a year ago are Del Mar, UTC, Chula Vista West, Miramar and Mission Valley. The vacancy rate in Sorrento Mesa and Kearny Mesa, two of the larger submarkets, decreased 0.8 and 0.2 percentage points, respectively, from a year ago, demonstrating the shifting balance between supply and demand in the county’s larger and prime submarkets.
Leasing activity during the fourth quarter was promising with 164,173 square feet absorbed countywide, bringing the total net absorption for 2010 to positive 606,808 square feet, according to the report. This is a positive change from 2008 and 2009 when tenants returned a combined 1.4 million square feet countywide, negatively affecting San Diego office market fundamentals. Evaluating quarterly absorption over the last year (4Q09 to 4Q10), four of five quarters recorded positive absorption with the exception of the second quarter of 2010, further confirming that the leasing activity is picking up. Sorrento Mesa, Mission Valley and Kearny Mesa recorded the highest leasing activity countywide during the fourth quarter accounting for a combined 485,681 square feet of positive net absorption. This offset the 277,325 square feet of negative net absorption recorded by Poway, Torrey Pines and Scripps combined; the submarkets with the highest negative net absorption in the fourth quarter. Reviewing annual leasing activity by submarket, Downtown returned the most space (219,198 square feet) in 2010 followed by Scripps, Eastgate and Torrey Pines. The Rancho Bernardo submarket recorded the highest positive net absorption of 616,400 square feet in 2010, followed by Governor Park, Del Mar and UTC. Sixteen of 30 office submarkets countywide recorded positive net absorption in 2010, providing a reason for optimism.
The overall countywide monthly average asking rate for all classes remained unchanged at $2.27 per square foot full service from the last quarter but has decreased 5.8 percent from a year ago, the report said. The Class A monthly average asking rate also remained unchanged at $2.61 per square foot full service from the third quarter despite the 7.4 percent decrease from a year ago. Torrey Pines, La Jolla, Encinitas and Del Mar recorded the highest Class A asking rents in the fourth quarter countywide.
Scripps Mercy Hospital Energy Plant Now Fully Operational
A new energy-efficient energy plant at Scripps Mercy Hospital has become fully operational. It includes a 3,000-ton air conditioning and water cooling plant that chills and circulates water through the 12-story hospital. The $40 million plant was constructed to improve hospital operations and to support future expansion plans for the facility, including the eventual replacement of the hospital tower by 2030 to meet seismic standards. Construction on the 20,000-square-foot plant began in 2008 and was completed in 2010. The plant also houses a 700 horsepower boiler steam plant that can heat the equivalent of 600 homes per day, and the 4,000 kilowatt power plant can provide power for the equivalent of 160 homes per day. The central energy plant’s built-in efficiencies, including upgraded equipment and technology, garnered $376,066 from the San Diego Gas & Electric Energy Savings Bid Program.
Artisan Design Group Wins Awards
Artisan Design Group (ADG) in San Diego has won two gold awards and three silver awards from the National Association of Home Builders at the International Builders Show in Orlando, Fla. The firm’s new showroom, located Downtown on the corner of Ash Street and Pacific Highway, received the gold award as the “Best Design Center/Urban Studio.” The 3,500-square-foot showroom features three full kitchens, bathroom displays, home office interiors, home automation systems, customized lighting and storage systems, cabinetry, flooring, window coverings, and furnishings. ADG also received the gold award and two silver awards in the “Best Model Under $300,000” category for its design of models for Holmes Homes in Daybreak, a master-planned community in Utah’s Salt Lake Valley, developed by Kennecott Land, sister company of Kennecott Utah Copper. In the “Best Model Over $1 Million” category, ADG won a silver award for the Sapphire Tower Penthouse B model, which it created for Urban Housing Partners and Centurion Partners in Downtown San Diego. The 2,823-square-foot, move-in ready penthouse model was created after ADG’s original penthouse model was sold fully furnished for $2.2 million.
Small Business Workshops
SCORE San Diego has scheduled January workshops to help small business owners and those interested in starting a small business. Fees range from $29 to $109. For more information, call (619) 557-7272. To register for a workshop online, visit scoresandiego.org.
Upcoming SCORE San Diego Workshops:
• Jan. 15 – QuickBooks Basic – 9 a.m. to 4 p.m. at National University – Kearny Mesa (9388 Lightwave Ave., San Diego 92123; pre-paid registration $69, $79 at the door).
• Jan. 18 – Restaurant 101 – 9 a.m. to 1 p.m. at National University – Kearny Mesa (9388 Lightwave Ave., San Diego 92123; pre-paid registration $49, $59 at the door).
• Jan. 19 – Internet Marketing 301: Increase Sales Through Pay-Per-Click – 9 a.m. to noon at National University – Kearny Mesa (9388 Lightwave Ave., San Diego 92123; pre-paid registration $49, $59 at the door).
• Jan. 20 – Internet Marketing 101: Use the Internet to Successfully Marketing Your Business – 9 a.m. to 3 p.m. at National University – Carlsbad (705 Palomar Airport Road, Carlsbad 92011; pre-paid registration $69, $79 at the door).
• Jan. 21 – Women’s Networking Breakfast – 8 to 11 a.m. at Morgan Run Resort & Club (5690 Cancha de Golf, Rancho Santa Fe 92091; pre-paid registration $30 by Jan. 18, $40 thereafter).
• Jan. 21 – Business Basics 101 – 9:30 to 11:30 a.m. at SCORE Entrepreneur Center (550 West C St., #550, San Diego 92101; no charge – please pre-register).
• Jan. 24 – Professional Selling: Increase Your Business Sales Now! – 9 a.m. to 4 p.m. at National University – Kearny Mesa (9388 Lightwave Ave., San Diego 92123; pre-paid registration $69, $79 at the door).
• Jan. 24 – Insurance: What You Need to Know – 9 a.m. to noon at SCORE Entrepreneur Center (550 West C St., #550, San Diego 92101; pre-paid registration $49, $59 at the door).
• Jan. 25 – Introduction to Starting Your Own Business – 9 a.m. to 4:15 p.m. at National University – Carlsbad (705 Palomar Airport Road, Carlsbad 92011; pre-paid registration $69, $79 at the door).
• Jan. 26 – Business Plan 201: How to Write a Winning Business Plan – 9 a.m. to 3:30 p.m. at National University – Kearny Mesa (9388 Lightwave Ave., San Diego 92123; pre-paid registration $99, $109 at the door).
• Jan. 26 – Good Governance for Nonprofits: Effective Board Performance – 9 to 11:30 a.m. at The San Diego Foundation – Liberty Station (2508 Historic Decatur Road, #200, San Diego 92106; pre-paid registration $39, $49 at the door).
• Jan. 27 – Internet Marketing 302: Develop a Winning E-mail Marketing Success Strategy – 9 a.m. to noon at National University – Kearny Mesa (9388 Lightwave Ave., San Diego 92123; pre-paid registration $49, $59 at the door).
• Jan. 27 – Financial Statements: What They Mean, How to Use Them – 9:30 to 11:30 a.m. at National University – Carlsbad (705 Palomar Airport Road, Carlsbad 92011; pre-paid registration $29, $39 at the door).
• Jan. 28 – Marketing and Contracting with State and Local Governments – 9 a.m. to 3 p.m. at National University – Kearny Mesa (9388 Lightwave Ave., San Diego 92123; pre-paid registration $69, $79 at the door).
• Jan. 31 – Intellectual Property: Promise and Practicalities – 9:30 to 11:30 a.m. at SCORE Entrepreneur Center (550 West C St., #550, San Diego 92101; pre-paid registration $29, $39 at the door).
The Daily Business Report is produced by REP Publishing Inc., publisher of SD METRO, the North Park News, Kensington News and the West Coast Craftsman. (619) 906-4104.