Daily Business Report-July 3, 2019
Throughout the past year, rent increases have been occurring not just in the city of San Diego, but across the entire metro.
San Diego rents increased
marginally over the past month
San Diego rents have increased 0.1 percent over the past month, and have increased marginally by 0.8 percent in comparison to the same time last year, according to the most recent report by Apartment List. Currently, median rents in San Diego stand at $1,570 for a one-bedroom apartment and $2,030 for a two-bedroom. This is the second straight month that the city has seen rent increases after a decline in April. San Diego’s year-over-year rent growth lags the state average of 1.2 percent, as well as the national average of 1.6 percent .
Rents rising across the San Diego Metro
Throughout the past year, rent increases have been occurring not just in the city of San Diego, but across the entire metro. Of the largest 10 cities that we have data for in the San Diego metro, all of them have seen prices rise. Here’s a look at how rents compare across some of the largest cities in the metro.
Chula Vista has seen the fastest rent growth in the metro, with a year-over-year increase of 1.9 percent. The median two-bedroom there costs $2,170, while one-bedrooms go for $1,670.
Carlsbad has the most expensive rents of the largest cities in the San Diego metro, with a two-bedroom median of $2,510; rents grew 1.4 percent over the past month and 1.9 percent over the past year.
National City has the least expensive rents in the San Diego metro, with a two-bedroom median of $1,330; rents were down 0.8 percent over the past month but remained flat year-over-year.
Similar cities nationwide show more affordable rents compared to San Diego
As rents have increased marginally in San Diego, a few similar cities nationwide have also seen rents grow modestly. Compared to most other large cities across the country, San Diego is less affordable for renters.
Rents increased slightly in other cities across the state, with California as a whole logging rent growth of 1.2 percent over the past year. For example, rents have grown by 2.3 percent in San Jose, 1.2 percent in San Francisco, and 0.6 percent in Los Angeles.
San Diego’s median two-bedroom rent of $2,030 is above the national average of $1,190. Nationwide, rents have grown by 1.6 percent over the past year compared to the 0.8 percent increase in San Diego.
While San Diego’s rents rose marginally over the past year, many cities nationwide also saw increases, including Phoenix (+3.8 percent ), Austin (+3.5 percent ), and DC (+2.3 percent ).
Renters will generally find more expensive prices in San Diego than most similar cities. For example, Phoenix has a median 2BR rent of $1,080, where San Diego is more than one-and-a-half times that price.
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JLL completes acquisition
of capital markets firm HFF
Jones Lang LaSalle Inc. (JLL) announced that it has closed its acquisition of HFF, a $1.8 billion transaction consisting of cash and JLL stock. JLL said the acquisition “greatly expands JLL’s ability to provide world-class capital markets services and expertise to its clients.”
JLL and HFF have been key players in San Diego County’s real estate market. HFF had more than $650 million in revenue in 2018 and approximately 1,050 employees. JLL said clients will benefit from a global team of more than 3,700 capital markets professionals across 47 countries, delivering new expertise and scale, more extensive market coverage and greater deal flow.
With the acquisition complete, Mark Gibson, former CEO of HFF, joins JLL as CEO, Capital Markets, Americas and co-chair of its Global Capital Markets Board.
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General Atomics awarded $80 million
Army UAS logistics support contract
Govcon Wire
General Atomics has secured an $80 million cost-plus-fixed-fee contract to provide logistics support services for the U.S. Army’s Gray Eagle Block 0 drones.
The company’s aeronautical systems business will perform work in Poway and Afghanistan through June 28, 2020, the Department of Defense said.
Army Contracting Command sought contractor support via the Internet and obligated $28.8 million at the time of award from the service branch’s fiscal 2019 defense overseas contingency operations transfer funds.
The Gray Eagle unmanned aircraft system is a component of the Army’s Aviation Modernization Plan and designed to operate at an altitude of 29,000 feet with up to 1,075 pounds of payload.
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Solar research shimmers in Imperial Valley
SDSU News Team
Three innovative renewable energy projects, all powered by the sun and under development and trials at San Diego State University’s Sustainability Energy Center (SEC), were showcased at the Imperial Valley Campus in an event for industry experts, energy policy makers, and government and business representatives.
The projects include research that could benefit development of fuel cell vehicles, and improvements in steam production for industrial purposes.
The June 27 event in Brawley was co-hosted by SEC and Southern California Gas Co. in collaboration with Hyperlight Energy, Genifuel Corporation, STARS Technology Corporation, Pacific Northwest National Laboratory and the National Renewable Energy Laboratory (NREL). The event also included tours of the three projects operating on a 1.5-acre plot at SEC.
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Scripps Research ranked top
U.S. nonprofit scientific institute
Scripps Research is the top nonprofit scientific institute in the United States for producing high-quality research, according to the 2019 Nature Index Annual Tables, based on discoveries published in leading scientific journals.
In addition to receiving the No. 1 U.S. ranking and No. 5 global ranking in the category encompassing nonprofits and nongovernmental organizations (NGOs), Scripps Research ranked fourth globally in chemistry and fifth for life sciences.
The annual rankings, published June 20, “highlight the institutions and countries which dominated research in the natural sciences in 2018,” according to Nature.
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Teresa Campbell given 2019 Business Leadership
Award by North San Diego Business Chamber
San Diego County Credit Union President and CEO Teresa Campbell was recognized with the 2019 Business Leadership Award by the North San Diego Business Chamber. The award honors outstanding business leaders who make an impactful, positive difference within the community. Campbell was nominated for her exemplary leadership, direction and passion for putting people before profits within the San Diego community.
Campbell serves on the Department of Business Oversight, CU Advisory Committee and the Consumer Financial Protection Bureau, Credit Union Advisory Council. She served as the 2012 and 2013 Board Chair of the California Credit Union League and has since continued her service to the League by serving as a Board and Committee Member. Campbell also serves as a Board Member of the National Credit Union Foundation.
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USD business dean steps down,
returning to professor role
University of San Diego’s School of Business has made a shift at the top. Jaime Alonso Gomez, who served as business dean since 2015, has chosen to step down and return to his role as a professor of management in the business school following a sabbatical. A national search to find a new dean will take place this fall.
During this transition, Gomez announced that Barbara Lougee, associate dean for graduate programs, has agreed to serve as interim dean to continue building the school’s mission and momentum while a search committee works to identify a new dean.
Gomez’s four years as dean has been marked by numerous school successes, among them:
- Business school programs earned several key rankings, including No. 1 college in the nation for real estate, No. 1 MBA in San Diego by multiple publications, No. 2 school in California for international business, No. 2 in California and No. 1 in San Diego for accounting, etc.The Small Business Development Center, The Brink, has been ranked as the No. 1 business accelerator in San Diego.
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Landscape Architect chapter invites
nonprofits to apply for grants
The San Diego chapter of the American Society of Landscape Architects (SDASLA) invites local nonprofits to apply for its annual grant of up to $5,000 to design or construct landscape architectural improvements in locations such as parks, schools and neighborhoods. The 2020 Community Grant application is available on SDASLA’s website www.asla-sandiego.org/events or by calling the chapter at 619.283.8818 for information or a copy of the grant application. The application deadline is Aug. 17, 2019.
Any nonprofit community group recognized by the IRS and located in San Diego County that has been in continuous existence as a nonprofit group for a minimum of three years is eligible to receive the grant. Projects must prove that they have the support and involvement of their community and/or environmental interests within San Diego County and applications must show a clear benefit to the wider community.
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Port of San Diego cruise ship terminal
equipped with nine new chargers
Cruise ship passengers embarking or disembarking at the B Street Cruise Ship Terminal on the Embarcadero in Downtown San Diego enjoy cleaner air these days, thanks to chargers that have come online ahead of the 2019-2020 cruise season to allow electric forklifts to operate more efficiently.
San Diego Gas & Electric and the Port of San Diego partnered to bring nine charging stations to the B Street Cruise Ship Terminal as part of a wider effort to electrify equipment and vehicles to help reduce air pollution and greenhouse gas emissions regionwide from Port operations.
The Port Electrification Project is one of several projects undertaken by SDG&E to further expand the charging network to help accelerate the adoption of clean vehicles and equipment. The Port’s electric forklifts have been plugging into the building’s wall outlets for many years. SDG&E’s collaboration with the Port resulted in the installation of nine chargers to more efficiently charge the equipment and set a standard for future electric equipment needing similar charging capabilities.
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Port to sponsor 64 events on San Diego
Bay waterfront in Fiscal 2019/2020
The Board of Port Commissioners has approved $430,200 in funding and $1.09 million in services for 64 special events to be held on the San Diego Bay waterfront during fiscal year 2019/2020. The sponsorships are part of the Port of San Diego’s Tidelands Activation Program, an annual grant program that supports events that engage the community and inspire visitors to enjoy San Diego Bay.
This year, 77 applications for sponsorships were received. Sponsorship criteria requires that the event take place in the Port’s jurisdiction on San Diego Bay, which includes 22 public parks throughout the Port’s member cities of Chula Vista, Coronado, Imperial Beach, National City and San Diego. It also includes Broadway Pier and the Port Pavilion, B Street Pier and the Cruise Ship Terminal, the National City Aquatic Center, and public open spaces along San Diego Bay and the oceanfront of Imperial Beach.
Click here for the schedule of events.
