Daily Business Report-June 21, 2016
Higher vacancy rates in East County and South County (6 percent and 6.3 percent, respectively) accounted for much of the increase in the county’s overall average rate.
Rental Vacancies Rise
Across San Diego County
Survey also shows slight increase in average rent
The vacancy rate in residential rental units across San Diego County stands at 4.5 percent, a significant increase from the 2.6 percent vacancy rate in fall 2015, according to the San Diego County Apartment Association’s Spring 2016 Vacancy and Rental Rate Survey.
Higher vacancy rates in East County and South County (6 percent and 6.3 percent, respectively) accounted for much of the increase in the county’s overall average rate. North County and the city of San Diego remained much closer to recent averages, at 2.8 percent and 3.2 percent, respectively.
“The latest numbers are an encouraging sign that the region has made some progress in expanding the rental housing supply, especially in the south and east,” said SDCAA Executive Director Alan Pentico. “But the pace of development remains too slow. We are still very much in the midst of what many are calling a housing crisis.”
Pentico noted that the higher vacancy rates this spring were likely due to temporary factors. For example, new multifamily developments that have opened recently in East County and the South Bay may be responsible for the higher vacancy rates in those areas, according to SDCAA’s analysis. Another possibility is that landlords are holding units vacant to allow time for renovations and upgrades.
“Existing properties will not be able to meet growing demand,” Pentico said. “Rising operating costs — such as water and sewer rates, property taxes and worker’s compensation premiums — will make it even more difficult for property owners to keep rents at artificially low levels.”
Among specific unit types, the survey found one-bedroom units have the highest vacancy rate across the county, at 5.7 percent. Units with three or more bedrooms have the next-highest vacancy rate, at 5 percent. The rate for two-bedroom units is 3.8 percent, while the rate for studio units was the lowest of all, at 2 percent.
SDCAA’s spring survey showed a weighted average rent of $1,560, which is a 3.1 percent increase from the $1,513 average reported in the spring and fall surveys of 2015. Broken down by specific unit types, the weighted average was $1,084 for studio units; $1,368 for one-bedroom units; $1,637 for two-bedroom units; and $2,082 for units with three or more bedrooms.
SDCAA’s Vacancy & Rental Rate Survey includes a range of rental property types, including single-family homes, condos, townhomes and duplexes, as well as small and large multifamily communities. Some rental market surveys include a higher number of units but are limited to large multifamily rental complexes.
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Port Installing Solar Panels on
B Street Cruise Ship Terminal
The Port of San Diego is installing solar panels on the roof of its primary cruise ship terminal, which is expected to offset approximately 70 percent of the building’s energy consumption. The B Street Cruise Ship Terminal is located at 1140 North Harbor Drive in San Diego.
The project to install a 167-kilowatt photovoltaic system at the B Street Cruise Ship Terminal is part of the Port’s commitment to reducing its carbon footprint. The Port Environmental Fund project is expected to generate enough energy to power 20 homes, and reduce greenhouse gas emissions by 187 metric tons annually.
The Board of Port Commissioners in January awarded the $341,000 contract to Sullivan Solar Power of California. Installation began in May and the system is expected to be operational by the end of June.
“The Port of San Diego demonstrates its commitment to smart technology and clean power with this installation of a photovoltaic system at our main cruise ship terminal in addition to three other Port facilities,” said Chairman Marshall Merrifield of the Board of Port Commissioners. “This Port Environmental Fund improvement project is being completed just as we celebrate growth in our cruise business with an increase in calls of about 50 percent projected from this season to next.”
Consisting of 630 solar panels, the project will also include an interconnection agreement for net metering with San Diego Gas & Electric. Net metering is a billing mechanism that credits solar energy system owners for the electricity that is added to the grid from systems that produce more than what is used by the facility.
The Port has installed solar systems on several Port facilities in recent years:
2009: Port Administration Building
2010: Port Pavilion on Broadway Pier
2011: Port’s General Services Building in National City
During Fiscal Year 2015, nearly 251,000 kilowatt hours of renewable energy were produced from the three existing photovoltaic systems on Port facilities.
The B Street Cruise Ship Terminal is projected to produce approximately 266,000 kilowatt hours per year.
Gas Prices Continue
To Drop in San Diego County
By City News Service
The average price of a gallon of self-serve regular gasoline in San Diego County dropped three-tenths of a cent Monday to $2.868, the sixth decrease in eight days.
The average price is two-tenths of a cent less than one week ago and 70.5 cents lower than one year ago, according to figures from the AAA and Oil Price Information Service.
However, it is 7 cents more than one month ago.
SDSU Gifted $200,000 for LGBT
Programs in Wake of Orlando Terror
By City News Service
San Diego State University announced a $200,000 donation Monday for gay and lesbian programs in the wake of the recent Orlando nightclub massacre.
David Gubser of San Diego gave $100,000 to support the school’s Pride Center and an equal amount for its LGBT Studies Program.
“At this time, given the terrible events in Orlando, people need to become more educated about the LGBT community,” Gubser said. “I couldn’t think of a better way to accomplish that goal than through a gift to SDSU.”
SDSU officials said Gubser is a regular supporter of LGBT centers and organizations in Southern California, and the man recently extended his advocacy to college campuses.
His donation will help expand the Pride Center’s programs to include academic mentoring, guest speakers, health and safety training and, possibly, leadership conferences, according to the school. Also, it will go toward the creation of an endowed scholarship for LGBT majors.
SDSU created its interdisciplinary LGBT Studies Program in January 2012 in the College of Arts and Letters. The university also offers a minor and a graduate-level certificate in LGBT studies.
The Orlando shootings on June 12 took 49 lives in a nightclub patronized by the LGBT community. Gunman Omar Mateen professed allegiance to the Islamic State during a phone call to police before he was fatally shot by an officer.
Council Committee OKs Tax on Future
Businesses Selling Recreational Pot
By City News Service
A proposal to impose a tax on businesses that would sell recreational marijuana in the future in San Diego was approved by the City Council’s Rules Committee Monday and might go before voters for adoption in November.
Councilman Mark Kersey’s plan is to establish an 8 percent tax on gross receipts of such businesses in order to cover extra municipal licensing and enforcement costs, should voters pass a statewide measure to legalize recreational use of the drug. It would not tax marijuana designed for medicinal use, Kersey said during Monday’s meeting.
He said approval of the state proposition would create an unfunded mandate that would financially burden city government.
“I do not want to divert money away from street repair or further stretch our public safety resources in order to manage an unorthodox legal framework that will be imposed on our city in November when it passes,” Kersey said.
He described his proposal as “prudent policy planning” that he wouldn’t pursue except for the state’s recreational use measure.
The committee voted 4-1 to have staff develop ballot language and bring it back to the full City Council, which will decide whether to put it before San Diego voters. Councilman Chris Cate cast the dissenting vote.
National Health Research Center
Launches Norovirus Vaccine Trial
The Naval Health Research Center in San Diego has launched a clinical trial at Recruit Training Command to evaluate the effectiveness of the first norovirus vaccine in reducing outbreaks of acute gastroenteritis.
Currently, there is no vaccine to prevent norovirus, a highly contagious disease which causes vomiting and diarrhea and can infect anyone who comes into contact with the pathogen. The virus can be spread by infected people, contaminated food or water, or contact with contaminated surfaces — making populations living in close proximity, like military recruits, more susceptible to outbreaks.
”Norovirus is the largest cause of acute gastroenteritis in the United States,” said Cmdr. Dennis Faix, preventive medicine physician at NHRC. “Military recruits are particularly vulnerable to the disease with recruits living side-by-side in the barracks. RTC has experienced outbreaks in recent years, which can significantly impact training populations, disrupt training schedules, and has the potential to cause long-term health consequences.”
The vaccine trial will last up to one year, said Faix, with results contributing to the assessment of vaccine effectiveness to support approval by the U.S. Food and Drug Administration for widespread use among other U.S. military populations and civilians.
Listen to Our Veterans Project
The Listen to Our Veterans Project, a first-of-its-kind digital listening campaign, is designed to quickly give veterans and interested citizens the opportunity to share their feedback on the various veteran programs/services available. The entire process can take less than a minute.
Click here.
The Listen to Our Veterans project was established by a group of veterans, media, business and technology organizations with the goal of providing veterans and other interested parties an easy way to share their experiences and opinions, and ultimately aggregate that feedback into large-scale usable insights that can be used for good.
The project is brought to you by Donovan’s Steak and Chop House, NBC7 in San Diego and HundredX’s Expressit.
Your responses will provide stories and valuable data on the effectiveness of current programs supporting our veterans today. Thanks for taking the time to participate in this important initiative.
Marketing Firms Take Home ADDY Awards
Four San Diego marketing firms were recently honored with national ADDY awards at the American Advertising Federation’s (AAF) American Advertising Awards Show at the ADMERICA convention held at the Disneyland Resort Hotel in Anaheim. All four received second-place silver awards.
Award recipients included Saint West Filmworks for “Go West” and i.d.e.a. for “Save the Inventor, Dream Small,” both in the cinematography category. In addition, Traina Design was recognized for “Traina Design Salud Coasters” in the advertising self-promotion specialty items category. Also, Wedge & Lever of Encinitas was honored in the book design category for “View From A Blue Moon” for their client, surfboard manufacturer Hurley International of Costa Mesa.
Four students from San Diego also received national silver student awards. They included Amjad Alotaibi, NewSchool of Architecture and Design, in the social media, single platform category, and three students from San Diego Portfolio Studio. They included: Ryan Renquist and Rodney Manabat, both in the website category; and, Brooke Lingenfelder in a category called guerilla marketing, installations and events, campaign.
