Daily Business Report: July 10, 2023
Visual Capitalist
Visualizing 1 Billion Square Feet
of Empty Office Space
By Dorothy Neufeld
Graphic Design by Christina Kostandi
In April, one of America’s largest office owners, Brookfield, defaulted on a $161 million loan. The loan, covering 12 office buildings, was mainly concentrated in the Washington, D.C. market. Faced with low occupancy rates, it joined other office giants Blackstone and WeWork defaulting on office debt this year.
The graphic shows nearly 1 billion square feet of empty office space in the U.S. based on data from JLL — and the wider implications of office towers standing empty.
At the end of the first quarter of 2023, a record 963 million square feet of office space was unoccupied in America. An estimated five to 10 office towers are at risk of defaulting each month according to Manus Clancy, senior managing director at Trepp.
San Diego had 10.7 million square feet of office vacancy in the first quarter of 2023, according to JLL.
New York has roughly 76 million square feet of empty office space. If this were stacked as a single office building, it would stretch 7 miles into the atmosphere. In 2019, the office sector accounted for about a third of all jobs in the city.
Across 54 markets in the dataset, San Francisco has the highest vacancy rate at over 26 percent. Prior to the pandemic, vacancy rates were about 4 percent. This year, Salesforce walked away from a 30-story tower in downtown San Francisco spanning 104,000 square feet in an effort to cut costs.
Here are cities ranked by their total square feet of office vacancy as of Q1 2023. Figures include central business districts and suburban areas.
Acting Governor Toni Atkins signs
legislation in an historic first
On July 6, Acting Governor Toni G. Atkins (D-San Diego), who is the first person in 150 years to have served as both Senate President pro Tempore and Assembly Speaker, became the first female Senate President pro Tempore in California history to sign legislation into law as acting governor. Among the measures she signed is AB 588 by Assembly Speaker Robert Rivas – the Speaker’s first bill to be enacted into law since his swearing-in on Friday.
“The honor and privilege to sign these bills into law is not lost on me. For legislators, the authorship and shepherding of a bill through the legislative process is what we do, and I’m humbled to experience the other side of the process by signing these bills into law,” said Atkins, who is also the firstopenly LGBTQ+ person to have served as acting governor.
“I’m thrilled to step into the governor’s shoes,” Atkins said during a brief ceremony. “Though I have better shoes than him.”
Gov. Gavin Newsom was out of the state when Atkins signed the measures.
Newest, most advanced Burke-class destroyer
accepted by Navy, will operate out of San Diego
The USS Jack H. Lucas, the newest, most advanced Burke-class destroyer, became part of the Navy Tuesday and will operate out of San Diego, where it will help replace aging Cold War-era cruisers. Mississippi-based shipbuilder Ingalls delivered Lucas to the Navy following a week of sea trials in the Gulf of Mexico. The $2.4 billion ship is expected to arrive at Naval Base San Diego later this year. Lucas is the first variant III version of the Burke-destroyer, a ship that’s known as the backbone of the Navy because of its power and versatility. It can strike targets 1,000 miles away with Tomahawk cruise missiles.
City of San Diego launches employee
benefit program to assist with child care costs
The City of San Diego is launching a pilot program to support employees with the cost of child care for children ages 0-12. The Municipal Child Care Benefit Pilot Program is funded through a federal grant.
Participation in the program will be available to eligible employees with monthly payment amounts based on need. To be eligible to apply, city employees must have an individual base gross income less than $95,350 per year, work full-time or work at least 20 hours per week while also enrolled in a training or higher education program.
Benefit payments may range between $100-$1,000, per dependent, based on family need factors.
Plants pollinated by honey bees
produce lower-quality offspring
Dominate in the San Diego region, foreign honey bees visit nearly twice as many flowers as native bees
By Mario Aguilera | UC San Diego
With a broad mix of plant and animal species, the San Diego region is widely regarded as a global biodiversity hotspot. As key pollinators, bees play a foundational role in the region’s floral diversity.
But not all bees have the same influence on the plants they pollinate, new research from University of California San Diego scientists has revealed. Pollination by honey bees, which are not native to the Americas, produces plant offspring of considerably inferior quality (lower fitness), than offspring resulting from native pollinators, according to the study, published in Proceedings of the Royal Society B. The study is believed to be the first to directly compare offspring fitness resulting from honey bee pollination with other floral visitors.
City of San Diego to invest $12.2 million
into citywide arts and culture activities
To promote greater public participation in artistic and cultural activities, the City of San Diego will grant funds to 186 local nonprofit organizations this fiscal year. The funding will support programs and activities such as film and video screenings, exhibits, performances, festivals, parades and other neighborhood events.
The city’s Commission for Arts and Culture annually funds local nonprofit organizations to cultivate and expand arts and culture activities in all City Council districts. The Commission’s Organization Support Program (OSP) and Creative Communities San Diego (CCSD) award the funding, which is generated through a local allocation of Transient Occupancy Tax collected from visitors who stay overnight in hotels, motels and other similar accommodations.
SDG&E finishes two large energy storage facilities
SAN DIEGO — San Diego Gas & Electric has completed two energy storage facilities that have the capabiliy of powering 130,000 homes for four hours. Located in Fallbrook and Imperial Valley, the facilities are made up of stacked lithium-ion batteries and will extend clean energy into peak evening hours, cutting down reliance on conventional power plants. They join forces with existing storage facilities in Miramar and Kearny Mesa in powering the region and have already begun commercial operations.
Thermo Fisher Scientific gets FDA
approval for pre-eclampsia blood test
CARLSBAD — Carlsbad’s Thermo Fisher Scientific has secured FDA approval for a first of its kind pre-eclampsia blood test. Pre-eclampsia is a severe form of high blood pressure and a leading cause of death in pregnancy. The blood test can identify patients who will not develop pre-eclampsia with 96 percent accuracy, allowing patients to be discharged safely from the hospital.
General Atomics contracted
to update Army’s Gray Eagle
SAN DIEGO — General Atomics Aeronautical Systems is developing a more powerful Gray Eagle 25M aircraft for the U.S. Army. The undisclosed funding received will be used to give the uncrewed vehicle a more durable, reliable, and powerful 200-horsepower heavy fuel engine and upgrad the electrical power to the drive systems. The heavy fuel upgrad is part of an effort to simplify battlefield logistics using a single fuel.
Applications open for MetroConnect
export accelerator program
SAN DIEGO — Applications for World Trade Center San Diego’s export accelerator MetroConnect VII close on July 14. The new cohort of 15 businesses will be placed into one of three specialized tracks reflecting San Diego’s economic strengths—life sciences, strategic technology, and consumer goods. Together over the course of the year, the cohort will receive resources and partnerships, including a shot at up to $30,000, to increase international sales and support job growth here at home. Apply here.
Neopets hosts booth at San Diego Comic-Con
SAN DIEGO —Neopets, the original virtual pet site that galvanised a generation of online gamers, is about to make waves at this year’s San Diego Comic-Con. Neopets will be setting up shop at San Diego Comic-Con from Wednesday, July 19 to Sunday, July 23rd at booth #1129 at the San Diego Convention Center. Attendees can purchase exclusive merchandise, meet The Neopets Team, purchase bespoke art, and connect with special guest Erinn Pascal, Editor of “Neopets: The Official Cookbook.”
San Diego’s Luxebooth.com awarded
Couples’ Top Choice Award
SAN DIEGO — Luxebooth.com, the provider of innovative and high-end San Diegophoto booth rental services, announce it has garnered the illustrious Couples’ Top Choice Award. This accolade underscores Luxebooth.com’s exceptional contribution to San Diego’s bustling event scene. Luxebooth offers an extensive range of customizable rental services, encompassing unique features like GIF and Boomerang booths, interactive touch screen mirrors, and bespoke props and backdrops to meet any event’s requirements.
Environmental Lights acquires City Theatrical
SAN DIEGO — Environmental Lights, a leader in LED lighting solutions, announced that it has acquired City Theatrical Inc and City Theatrical Ltd (UK). The acquisition continues Environmental Lights’ growth trajectory as it expands its footprint and product offerings in the scenic market. City Theatrical, based in Carlstadt, N.J., has been servicing the scenic and theatrical markets for over 37 years. Its Multiverse Wireless DMX technology is widely accepted as the standard in live performance globally, serving both Broadway and West End theatrical productions.
NuZee secures 5-year licensing deal
with Stone Brewing for coffee products
ESCONDIDO —NuZee Inc., a leading coffee co-packing and technology company has entered into a five-year global licensing agreement with Stone Brewing, the nation’s seventh largest craft brewery, sold in all 50 states and internationally in over 40 countries. Under the agreement, NuZee intends to co-manufacture and distribute Stone Brewing specialty coffee products nationwide through a vast network of natural grocery, traditional grocery, and convenience store channels, as well as office coffee and hotel brokers and distributors.
Quick Custom Intelligence deploys
Artificial General Intelligence as COO
SAN DIEGO — Quick Custom Intelligence (QCI), a world leader in Generative Artificial Intelligence, announced the deployment of Jarvis as its chief operating officer. Jarvis is a Generative AI rules engine that talks to 4 target operational systems. He brings deep operational experience to QCI with connectivity directly into QCI’s tooling. Jarvis is responsible for project management, task escalation and currently reads and processes all of the CEO’s emails.
Vistage makes key acquisition in Malaysia
SAN DIEGO — Vistage announced it has acquired a licensee in Malaysia to build upon the momentum and growth of CEO peer advisory in the region. Since 1957, Vistage has been bringing together groups of high-performing CEOs through a proven leadership experience that delivers results both personally and professionally. More than 45,000 Vistage members worldwide have access to expert speakers, personalized coaching sessions, and international networking. Under the guidance of their chair, –members come together to share expertise, challenge one another to think critically and arrive at better decisions.
