While some of Southern California’s larger economies continue to lag, San Diego has turned the corner toward growth. At least that’s the consensus from local experts, who say the worst is behind us and the market here has bottomed out.
According to Beacon Economics, San Diego County has added approximately 24,000 jobs to its nonfarm payrolls since hitting bottom in late 2009. The region’s growing tech and biotech niche has helped drive solid gains in the professional, scientific and technical industry, the firm says.
Beacon sees San Diego continuing down the road to recovery, driven by its highly skilled, high-value-added industry sectors. Total nonfarm employment should reach its pre-recession peak of 1.3 million jobs by late 2013. Unemployment, already below 10%, will continue to fall—to about 8% by 2013.
Jim Costello, principal and director of investment strategy at CBRE Econometric Advisors, tells Real Estate Forum that in the next five years, job growth will come to San Diego at about 2.3% per year, outpacing the US overall with its relatively paltry 1.5%. With single-family home construction expected to pick up, Costello also anticipates more construction jobs coming online. “San Diego’s rate of population growth drives it,” he says, pinning it at about 1.5% over the next five years compared to 0.9% for the rest of the country.
Even now, for example, Viejas Casino tribal leaders and casino executives recently unveiled plans to build a new 150-room hotel adjacent to the existing casino in Alpine, CA. The $36-million project is expected to create more than 400 construction jobs in addition to long-term positions post-build.
“A project like this takes on added significance in a challenging economic environment, where every new job means so much to local families and the local economy,” says Scott Alevy, CEO of San Diego East County Chamber of Commerce. He sees “a positive impact on local businesses that provide goods and services to Viejas Casino, the retail center and now the hotel. This is great news for our entire region.”
Beacon Economics and those involved in the Viejas Casino aren’t the sole voices of confidence about San Diego’s future. Jon Boland, a vice president in the local office of Voit Real Estate Services, says the region is outperforming other areas in California and the nation, driven by technology, professional and business services, finance and healthcare.
To read the rest of the story, visit the December 2011 issue of Real Estate Forum.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
