Daily Business Report, Dec. 7, 2016
The weighted average rent for one-bedroom units countywide grew more than any other unit type
San Diego Rental Rates Climb
While Vacancies Remain Low
Housing shortage keepsk rental market tight across the region
The average rent for all apartments in the San Diego region rose to $1,719 this fall, up from an average of $1,560 last spring and $1,513 one year ago, according to the San Diego County Apartment Association’s Fall 2016 Vacancy and Rental Rate Survey.
The weighted average rent for one-bedroom units countywide grew more than any other unit type, from $1,368 last spring to $1,531 this fall. Units with three or more bedrooms also saw an increase, from $2,082 last spring to $2,323 this fall. Studios rose from $1,084 to $1,128, while two-bedroom units rose from $1,637 to $1,789.
“Rising rents reflect the ongoing housing shortage in San Diego County,” said association Executive Director Alan Pentico. “The number of people looking to rent keeps growing, but the supply of rental housing is not growing anywhere fast enough to meet that growing demand.”
The vacancy rate in residential rental units across San Diego County now stands at 5.4 percent, a slight increase from the 4.5 percent vacancy rate reported last spring. In the city of San Diego, the vacancy rate remained lower, at 3.4 percent compared to 3.2 percent last spring. Vacancy rates in other parts of the county dropped significantly, from 6.3 percent to 3.7 percent in South County, and from 6 to 3.2 percent in East County. The decline in vacancies in South and East County may mean that new developments that had just come on the market during the last survey are now fully leased.
The most likely explanation for the countywide rise in average vacancy rate was a significant increase in vacancies reported in North County, where the survey found a vacancy rate of 11.5 percent compared to 2.8 percent last spring. Much of the North County anomaly can be attributed to two outliers — large complexes in Vista and Oceanside that reported numerous vacancies.
Studios and one-bedroom units continue to have the lowest vacancy rates, at 3.1 percent and 4.6 percent, respectively. The rate for two-bedroom units is 6 percent, while the rate for three-bedroom units is 5.9 percent.
“While we’ve seen a fair amount of construction and development activity around the county over the past six months, the amount of new residential construction has actually declined this year compared to 2015,” Pentico said.
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Researchers Say Marine Microbes Could
Clean Up Environmental Pollutants
By Annie Reisewitz
Marine bacteria first discovered off the coast of Puerto Rico more than 50 years ago could one day help clean up toxic pollutants in the environment.
Scripps Institution of Oceanography at the University of California San Diego researchers uncovered a new enzyme in marine bacteria that evolved to remove bromine from carbon. Bromine is one of four highly reactive members of the elemental group known as halogens that are also commonly found in man-made industrial chemicals such as pesticides and flame retardants.
Enzymes that remove halogens from man-made industrial compounds can be used to rid the environment of these harmful pollutants.
“In a strange twist of fate, a strategy used by a marine bacterium to make a molecule could actually help us break a molecule,” said Scripps researcher Abrahim El Gamal, a Scripps alumnus and lead author of the study. “This discovery could inspire new technology that might be utilized in bioremediation.”
Professor Bradley Moore and El Gamal from the Scripps Center for Oceans and Human Health identified the enzyme while analyzing the genes involved in the synthesis of pentabromopseudilin, an unusual natural chemical consisting of more than 70 percent of bromine.
The discovery of the bromine-removing enzyme completed the characterization of the biosynthesis of pentabromopseudilin 50 years after its historic discovery as the first marine bacterial antibiotic.
The next step for researchers in Moore’s lab is to use this information to develop new technologies based on the marine microbe to help mitigate these environmental pollutants.
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Murphy Development Breaks Ground
on Final Building
in Siempre Viva Business Park
Murphy Development is nearing completion of its 2.1-million square-foot Siempre Viva Business Park in Otay Mesa with the recent groundbreaking of the 79,050-square-foot Building 17, located at 8500 Kerns St. The development team includes architect Gene Cipparone, K&S Engineering and Lusardi Construction, the general contractor.
The $11.9-million Building 17, will feature 28-foot clear height, 2,000 amps of 277/480 volt power, manufacturing sewer and water capacity, ESFR sprinklers, concrete truck courts, wide column spacing and high dock door ratios designed for distribution users.
The park is home to General Dynamics, FedEx, Tyson, Bose and Iron Mountain.
Building 18, the penultimate project, was recently finished. The 121,970-square-foot building, located at 2600 Melksee St., was also completed on a speculative basis.
The final Building 17 is estimated to be finished in second quarter of 2017. The company anticipates that the building will be fully leased prior to completion.
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College District’s Free College Program
Set to Expand Significantly in 2017
The number of students receiving a free education through the San Diego Promise will more than quadruple to nearly 800 in 2017, the program’s second year, San Diego Community College District officials announced Tuesday at a news conference at San Diego Mesa College.
The district is expanding its pilot program during the 2017-18 academic year to include up to 600 incoming freshmen at San Diego City, Mesa, and Miramar colleges. That’s in addition to the 186 students who are currently enrolled in the program and expected to continue on to a second year next fall, marking an estimated 786 students benefitting from the effort that is part of the national free community college movement.
Of the 600 new San Diego Promise students, most will be 2017 graduates from the San Diego Unified School District. Seventy-five will be accepted from San Diego Continuing Education, th adult education division, and 10 freshmen will be admitted from the Monarch School, which has been educating homeless youth in the area for nearly three decades.
Applications are currently being accepted for the program. San Diego Unified students must apply by Feb. 10, 2017. Applications are currently available at www.sandiegounified.org/promise. Notification will be made by March 1.
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Advanced Warship USS Zumwalt
Due to Arrive in San Diego Thursday
The Navy’s newest and most technologically advanced surface ship, USS Zumwalt, is scheduled to arrive in its new homeport of San Diego on Thursday.
The guided-missile destroyer Zumwalt, commanded by Capt. James A. Kirk, is the lead ship of a class of next-generation multimission destroyers. It features a state-of-the-art electric propulsion system, wave-piercing tumblehome hull, stealth design, and the latest warfighting technology and weaponry available.
The Zumwalt-class destroyer will be capable of performing a range of deterrence, power projection, sea control, and command and control missions while allowing the Navy to evolve with new systems and missions, according to Navy officials. It does all of this while maintaining its stealth — making this visually imposing ship difficult to find whether close to the shore or far out to sea.
“The only thing more impressive than the capabilities of the ship are the capabilities of its fine crew,” said Kirk.
Upon arrival in San Diego, Zumwalt will begin installation of her combat systems, testing and evaluation, and operational integration with the fleet.
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Northrop Taps Saab for Marine Corps
G/ATOR Radar Components, Subsystems
ExecutiveBiz
A U.S.-based subsidiary of Saab has received a potential $18.6 million subcontract from Northrop Grumman to provide components and subsystems in support of a U.S. Marine Corps radar production program.
Saab Defense and Security will provide software, subsystems and assemblies for the next nine AN/TPS-80 ground/air task oriented radar low-rate initial production units under the contract, Saab said Monday.
Northrop secured a potential four-year $375.6 million contract from the U.S. Navy to produce and deliver nine AN/TPS-80 G/ATOR systems, GovCon Wire reported Sept. 1.
As prime contractor, Northrop will integrate Saab-built assemblies into Lots 3 to 5 G/ATOR units that will be delivered to the Marine Corps from 2018 forward.
Saab previously supplied six systems to Northrop under a prior contract for LRIP Lots 1 and 2.
The new subcontract award contains options for additional assemblies and associated spares, Saab said.
The G/ATOR program aims to equip the Marine Corps with a single radar type for air surveillance, air defense, ground weapon locating and air traffic control missions.
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CBRE to Relocate its Central
San Diego Office to Westfield UTC
CBRE Group Inc. announced that it will move its central San Diego office to Westfield’s UTC shopping center. The CBRE office will occupy the entire 32,336-square-foot third floor of a newly developed building that is part of Westfield UTC’s ongoing expansion and revitalization.
Located at the intersection of La Jolla Village Drive and Genesee Avenue, the building will include a concierge staff and valet service for CBRE employees and clients.
“Our new office will incorporate leading-edge technology,” said John Frager, executive managing director of the San Diego region. “All employees will be equipped with a laptop, and all work stations will include dual monitors, phone extension mobility and electronic sit/stand desk oprions.”
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Patients at Jacobs Medical Center
Can Gain Control
of their Room Environment
Patients at the newly opened Jacobs Medical Center at UC San Diego Health can be in command of their own experience by controlling room temperature, lighting, accessing their personal medical information, details on their patient care team and entertainment options all from their beds. That’s all from a swipe and tap of an iPad.
“By adding connectivity in every patient room, each person can take control of their hospital experience from regulation of their environment to connecting online with friends and family for support,” said Thomas J. Savides, chief experience officer at UC San Diego Health. “Patients also see portions of their electronic medical record to help them understand their progress and anticipate daily events. We hope that feeling in control will aid in the healing process.”
The 245-bed medical and surgical specialty hospital that opened its doors to patients in November has equipped every room with an iPad and Apple TV. Upon arrival at their room, patients have immediate access to the iPad, which allows them to take command of their room environment, reducing the need to call or wait for assistance to lower blinds or adjust room temperature.
But it’s the secure access to their own medical records, using the new MyChart Bedside iOS app by Epic, the electronic health record system in place at UC San Diego Health that enables patients to have more information in their hands than ever before. After patients create their own PIN to access medical records, they have safe and easy access to test results, photographs and biographies of their health care team, a schedule of medications or upcoming procedures and educational materials prescribed by physicians.
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Pacific Building Group Finishes
Improvements at General Atomics
General contracting firm Pacific Building Group has completed major tenant improvements on a 273,436 square-foot office and lab for General Atomics. Located in Rancho Bernardo, the updated building includes interior and exterior improvements, from data and storage improvements to new secured entryways.
General Atomics sought an office with improved connectivity and communication. the company’s offices remained operational while construction was underway.
Pacific Building Group team members who completed the project include Associate Project Manager Frank Torres, Senior Project Manager Mike Slaven, Superintendent Mike Smith, Superintendent Jim Entwisle and Project Coordinator Cindy Jones. Carrier Johnson + CULTURE served as the architect on the project.
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Northrop Grumman’s Tern UAS
Passes Two Important Reviews
AUVSI News
Northrop Grumman recently completed two milestones for its Tactically Exploited Reconnaissance Node (TERN) program, which seeks to build a UAS designed for multiple medium altitude, long endurance missions.
Back in October, the Tern UAS’ General Electric engine underwent a successful critical design review. The reviewers approved a configuration to the Tern’s engine that will give it the capability to fly both vertically and horizontally.
After that successful review of the General Electric engine, the Tern’s vehicle management system underwent a successful CDR as well. In this review, approval was given for hardware and software architecture that will give the Tern the ability to launch and recover vertically from ships and move to horizontal flights.
Tern’s program manager Bob August talked about the distinctive features of the UAS and when he hopes to see it be tested.
“Tern’s unique combination of speed, long endurance, range, and altitude would give the Navy and Marine Corps a cost-effective, transformational capability to conduct ISR, light strike, and other missions from the sea at ranges exceeding 600 nautical miles,” August said. “These successful milestones add confidence to our plan to demonstrate this new vehicle capability in 2018.”
The vision of the Tern team is to launch the system from small surface ships and travel anywhere between 600 and 900 nautical miles from its launch vessel, all while carrying a 600-pound payload, to conduct missions for the military.
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Ringing the Freedom Bell
PEARL HARBOR (Dec. 6, 2016) Ray Chavez, 104, the oldest living Pearl Harbor survivor, rings the Freedom Bell during the Freedom Bell Opening Ceremony and Bell Ringing at the USS Bowfin Submarine Museum & Park on Pearl Harbor, Hawaii. Civilians, veterans, and service members came together to remember and pay their respects to those who fought and lost their lives during the attack on Pearl Harbor. (U.S. Marine Corps photo by Cpl. Wesley Timm)
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Personnel Announcements
Sunrise Management Names Chief People Officer
Sunrise Management has promoted former Petco executive Marc Corless to the position of chief people officer.
Previously the director of human resources for the San Diego-based firm, Corless will take charge of all aspects of human resource administration and management — including policies, practices and operations — for Sunrise.
With a 30-year background in corporate human resources, Corless was most recently vice president of human resources for WIS International and worked in the same capacity for 11 years at Petco Animal Supplies. He has also held executive level positions with Liquid Investments and Cipher Data Products.
A resident of Poway, Corless holds a bachelor’s degree in psychology and sociology from San Diego State University.
