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Contact Us
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12230 El Camino Real
Suite 110
San Diego, California
92130
tel 858.794.5500
fax 858.794.5512
DRE# 01163646
dd 858.369.5417
dd 858.794.5510
dd 858.794.5512
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Leading off this month's newsletter is a comprehensive look at San Diego's life science environment by our own Rich Porreco. This specialty has been a bright spot in an otherwise crippled economy. While it is still a "tenant's market" in the life science arena, that could be changing quickly. The current vacancy rate is 6% and the market is becoming controlled by three significant REITs. Leverage is necessary for our life science clients in negotiating their leases and the two aforementioned factors could present an issue. Low occupancy costs are critical for life science companies, especially in the early stages of the R&D process. Rich closes with some important suggestions.
Secondly, we'd like to send our congratulations to Qualcomm Inc. and Scripps Health for being recognized as two of the top 100 best companies to work for in the United States by Fortune Magazine!
Late in 2011, on behalf of LPL, Cresa completed the negotiation of a 415,000 square foot new facility being built in UTC. This new single-tenant building could be the nation's biggest net-zero and carbon neutral commercial office building. This focus was of importance to both Hines and LPL and their "meeting of the minds" was well timed. The building will generate enough electricity to power at least 1,000 San Diego homes and will save several million dollars in utility costs over the 15 year lease.
We close with a report by Vistage International Inc., a San Diego based CEO peer advisory organization, indicating that CEO optimism is dropping. They note a 12.8% drop in the fourth quarter of 2012 as compared to the period in 2011. This article details their reasoning.
While the continued lagging economy can benefit our tenant clients in negotiations, the lack of commercial development means a landlord's market is coming at some point ahead. The market uncertainty continues to paralyze many companies who would otherwise make decisions based on a confident five-year plan. Those that can comfortably make those decisions will secure the lowest occupancy costs and save substantial money over the next 5 to 10 years. We can help you evaluate those unknowns and introduce strategies that will, in many cases, provide a level of comfort that will encourage you to move forward. We look forward to the opportunity.
Don Mitchell
Managing Principal
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 Preparing for the Future: San Diego's Life Science Environment
Rich Porreco, Principal, Cresa San Diego
 Despite continued sluggish national job reports, jobs are being created in San Diego where the county's unemployment rate is the lowest it's been in three years (as reported by the U.S. Bureau of Labor, January 2013). While this is encouraging news, it is only a small fraction of the magnitude necessary to positively impact our local economy. Furthermore, whether this becomes a lasting trend is a good topic for debate. The market's reaction to Obama retaining his job suggests that said noticeable job growth is to be short lived.
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Local Firms Make Fortune's "100 Best Companies" Ranking
San Diego Business Journal
San Diego-based Qualcomm Inc. and Scripps Health were among companies landing on Fortune magazine's recently released list of the "100 Best Companies to Work For" in the United States.
The magazine's 2013 ranking placed Qualcomm at number 11, and Scripps health at number 43.
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Healthiest Building in the US?
BisNow
What's it feel like to develop the nation's biggest net-zero and carbon-neutral commercial office building? Probably the way Hines senior managing director Paul Twardowski feels standing atop a crane at La Jolla Commons.
The 13-story, 415k SF building, delivering mid-2014, is already fully leased to LPL Financial. Paul tells us Hines' goal was to create a commercially viable building and then make it net zero.
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CEO Confidence Index Dips as Leaders Expect Slow Growth
San Diego Business Journal
Vistage International Inc., a San Diego-based CEO peer advisory organization, released a report that CEO optimism is dropping.
The Vistage CEO Confidence Index was 87.0 in the fourth quarter of 2012 - significantly lower than the 98.8 index score posted in the fourth quarter in 2011.
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Current Market Statistics
Sorrento Mesa Industrial Properties
Last month we provided stats for Governor Park office properties. This month we focus on industrial properties in the Sorrento Mesa submarket. Enjoy.
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About Cresa
Cresa is an international corporate real estate advisory firm that exclusively represents tenants and specializes in the delivery of fully integrated real estate services, including: Transaction Management, Project Management, Global Accounts, Portfolio Strategies, Location Planning, Lease Administration, Capital Markets, and Facilities Services. With more than 57 offices, Cresa is the largest tenant representation firm in North America. Through its partnership with Savills, one of the world's largest commercial real estate services firms; Cresa covers more than 255 locations in 40 countries. For more information, visit www.cresa.com.
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