SDBJ WEEKLY EDITION
PROPERTY: Economic Activity and Space Demands Raise Rents But Also Motivate Landlords to Improve Offerings
Many San Diego County office tenants landed some great “Class A” space at bargain prices in the immediate aftermath of the Great Recession of 2009-2010. Now, many of those businesses are facing what local commercial brokers aptly describe as “sticker shock,” as leases signed during that period come up for renewal.
FINANCE: Zebit’s Payroll Lending System Gives Employees a New Work Perk And Retailers a Piece of the Profits on Purchases
When San Diego-based lender Global Analytics bought a Philadelphia startup last year, it billed the acquisition as the perfect jumping off point to introduce its product to U.S. borrowers.
SERVICE: Policyholders, Cos. Find It’s Complicated
The companies emerging out of the sharing economy offer ways for users to make money using previously untapped resources, such as renting out an unused apartment for the weekend through Airbnb or inviting others over for a restaurant-quality meal with Feastly.
BREWING: Deal Could Leave Transformed Scene in Its Wake
Industry observers say the $1 billion tab that Constellation Brands Inc. plans to pay for San Diego’s Ballast Point Brewing & Spirits marks a significant milestone for the region’s burgeoning and maturing craft beer industry.
The ongoing contract impasse between Tri-City Medical Center and the SEIU-United Healthcare Workers West could lead to a first for San Diego County: A ballot initiative on executive pay.
LEADERSHIP: Millennial Women Blend Work, Ideals And Passion Into Careers
Sitting in the corner of a chocolate shop in Encinitas, four millennial women crowd around a small table. They are schooling me on everything from Maslow’s Hierarchy to the prevailing gender bias in corporate America. They interrupt each other often (and enthusiastically) as cups of hot chocolate teeter in their gesturing hands.
This Wednesday, on Veterans Day, we formally recognize our veteran community for their service. We honor their commitment, sacrifice and bravery in what we hope is a tradition of appreciation engrained in each of us. On behalf of the San Diego Regional Chamber of Commerce, I join in the chorus of gratitude, and ask that our business community collectively not only activate to hire more veterans but change the narrative around their employment.
INSURANCE: The Arrival of the Employer Mandate Brings New Rules, Regulations and Questions to Cos.
The Affordable Care Act’s controversial Employer Mandate is finally here.
Iboss Cybersecurity raised $35 million in series A funding from Goldman Sachs Private Capital Investing, the company announced Nov. 3.
M&A: Investment Bank Isn’t Content to Leave It to Lawyers
RA Capital Advisors partner Joel Reed thinks plenty of companies are leaving millions at the negotiation table when finalizing acquisitions. These buyers and sellers have lawyers there to work out last details, but they don’t have investment advisors in the room, he said.
TECH: Revenue, Net Income Down for Q4 and the Year
Call it a transition year. That’s a message CEO Steve Mollenkopf offered financial analysts about Qualcomm Inc.’s fiscal 2016, which is only several weeks old.
ECONOMY: Nonprofits Help Service Members Find Their Fit in the Workforce
Employment prospects for post-9/11 veterans were grim just a few years ago. About 15 percent were out of work in early 2011, compared with roughly 9 percent of the general population.
TECH: Code-Writing Boot Camps Are Popping Up As Students Seek Opportunity to Join the Tech Sector
The recruits wear shaggy beards and it’s laptops, not rifles, that have become their new best friends.
The U.S. Supreme Court, some quip, exists to reverse the U.S. Ninth Circuit Court of Appeals. Not even the land’s highest court would grant cert to reverse this item: Court staff from the circuit have received national recognition for their work in developing an electronic voucher-processing system that is improving how the federal judiciary manages spending for indigent defense.
Talk about a recipe for success: fast casual in a high-traffic, trendy spot with a menu that fills a void in the in the guilty pleasure/comfort food category.That would be The Crack Shack, a walk-up fried chicken and eggs restaurant opening next week in Little Italy. Mike Rosen and chef/partner Richard Blais are opening the restaurant at Juniper Street and Kettner Boulevard. There is no shortage of people willing to indulge in a well-prepared, freshly cooked piece of fried chicken;the Crack Shack will be a huge hit.
TOURISM: Beer Week, Other Similar Events Bring Visitors
As the craft-beer faithful converge for the annual San Diego Beer Week — actually 10 days filled with countywide beer breakfasts, geek tours, ale marathons and “tap takeovers” – the local region is expected to get a significant economic buzz in the form of tourism benefits. If past years are an indication, this year’s seventh annual event, organized by the San Diego Brewers Guild and scheduled for Nov. 6-15, should create a steady flow of hotel room bookings, brewery tours, and increased sales at local stores, bars and restaurants.
FASHION: Zandra Rhodes Practical Side Shines, Too
Fashion designer Zandra Rhodes, known for flowing chiffon dresses, occasionally fantasizes about other mediums that could benefit from her trademark bold colors and patterns. “I’d love to have a go to do carpets in Las Vegas,” the British-born Rhodes said. “You could do anything mad and be in charge of doing a mad hotel.”
PHARMA: Company Opts to Build Distribution Network
For the past three years, an office building owned by Carlsbad Technology Inc. sat empty, awaiting enough growth from the generic drug manufacturer to force an office expansion. The moment has come: Carlsbad Technology moved into its new offices last month to accommodate an additional 33 employees over the past nine months, for a total of 136 employees.
ECONOMY: Startups Find Good Guides In Accelerators, Incubators
In a global world with increasingly complex problems, it’s not a surprise that a successful startup no longer consists of one person armed with one idea. “Nobody innovates on their own,” said startup guru Greg McKee, CEO of San Diego’s longest-running business accelerator CONNECT. “The concept of the solo inventor working out of his garage is the myth of invention.”
JetPurple Airwayz announced plans to begin regularly scheduled luxury flights between San Diego and the Phoenix suburb of Scottsdale, Ariz., beginning in April.
FINANCE: Ballast Point Would Be First Local Brewer on Nasdaq
Ballast Point Brewing & Spirits Inc. is planning to take the plunge with an initial public offering (IPO) of stock.
Charitable donations have remained at about 2 percent of the U.S. GDP for decades. This presents the nonprofit sector with a classic dilemma — attempts to do something differently to grow overall giving come with a risk of losing share of market.
FINANCE: Suja Mega-Deal Part of Big Money Quarter
After a dismal start to the year, San Diego’s venture capital investment surged in the third quarter, marking the biggest quarterly haul in the region since 2008. The third quarter brought in nearly $434 million, up from the 7-year record-low $122 million raised just last quarter, according to a recent MoneyTree report by PricewaterhouseCoopers and the National Venture Capital Association.
FINANCE: Some Say Devil Is In too Many Details, Delay
The home mortgage industry is grappling with recently implemented lending rules aimed at simplifying and consolidating the information borrowers receive, making it easier for prospective homebuyers to compare offers, but potentially adding delays to the process.
RESOURCE: Desalination Plant Prepares For Big Role Locally And As Model Facility
San Diego’s vaunted $1 billion desalination plant, which will make water from the Pacific Ocean drinkable, is on the verge of pumping fresh water into the county’s water system for the first time.
Every two minutes a water main breaks somewhere in the United States, resulting in billions of gallons of treated water being lost every year. Worse are losses from household leaks — approximately 1 trillion gallons annually, or enough to represent the annual household water needs of 11 million homes, according to the U.S. Environmental Protection Agency.
Wells Fargo partnered with the Armed Services YMCA San Diego (ASY San Diego) recently to host a “kitting” and letter- writing event for military families. The event was part of a larger effort by Wells Fargo and the nonprofit Operation Gratitude to show appreciation for our nation’s armed forces.
Latham & Watkins advised local real estate powerhouse BioMed Realty Trust Inc. in its acquisition by Blackstone Group for a handsome $8 billion. Completion of the transaction, which is expected to occur in the first quarter of 2016, is contingent upon customary closing conditions, including the approval of BioMed Realty’s stockholders.
Qualcomm Inc. has agreed to sell its Vuforia business to PTC Inc., a $1.36 billion corporation from the Boston suburb of Needham, Mass.
DEFENSE: The Pentagon Cash Flow Is Kind to Some Cos., But the Specter of Defense Budget Cuts Still Looms
How healthy is the region’s defense economy? In the short term, it’s great. In the long term, observers seem a little more guarded