August - September 2009
SF Unemployment Hovers at 10 Percent
The most recent numbers reported by the California Employment Development Department peg San Francisco's unemployment rate for July 2009 at 9.9%, significantly higher than the July 2008 rate of 7.3%. While the national unemployment rate declined slightly to 9.4%, the California state unemployment rate increased to 11.9% in July 2009. However, San Francisco's unemployment rate remains the 8th lowest in the state, after Marin (8.2%), Santa Barbara (8.4%), Napa (8.8%), San Mateo (9%), San Luis Obispo (9.5%), Orange (9.5%) and Inyo (9.7%).
Other Bay Area county unemployment rates: Sonoma 10.3%, Contra Costa 11%, Alameda 11.5%, Solano 11.5% and Santa Clara 11.7%.
Some additional California unemployment rates to note: Los Angeles (12.5%), Sacramento (12%) and San Diego (10.3%).
Source: California Employment Development Department.
Foreign Direct Investment - SF a City of the Future
A recent article published by FDI Magazine ranked San Francisco the number-one large city for Foreign Direct Investment on its shortlist of North American "Cities of the Future 2009/10." Research for these findings took more than six months and involved data collection from nearly 400 North American cities. Cities were judged according to their economic potential, human resources, cost effectiveness, quality of life, infrastructure and business friendliness, and FDI promotion strategy.
New York ranked first among major cities, Tampa among small cities, and Greenville, S.C. among micro cities.
Source: FDI.net
Harding Park Welcomes The President's Cup
San Francisco's public golfing jewel, Harding Park, will host the biannual President's Cup on October 6 - 11. In addition to bringing world-class golf and some of the game's greatest players to the City, this tournament will stimulate the economy and give SF international media exposure.
President Barack Obama serves as Honorary Chairman, while California Governor Arnold Schwarzenegger and San Francisco Mayor Gavin Newsom serve as Honorary Co-Chairs. Prize money from The President's Cup is donated to various charities or golf-related projects, including The First Tee Scholars Program. In 2007, more than $4.2 million was distributed to charitable causes following the President's Cup in Montreal. Attendance is limited to 25,000. For information contact www.presidentscup.com.
Source: PGATour.com
Commercial Real Estate - A Buyer's Market
Last month we reported that the first half of 2009 concluded with continuing downward pressure on asking rates and an increase in vacancy. Not much has changed since, with sublease and renewals providing most of the transaction activity.
According to the Mid-Quarter 3 data from CB Richard Ellis:
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City-wide vacancy rates for Class A space reached 15.5%
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Sublease space increased by 138,000 sq. ft. during the last six weeks and represents 23.3% of the available Class A space
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City-wide Class A asking rates have dropped 14.9% since the fourth quarter 2008 to $36.62 per square foot.
While this information is negative and certainly supports a buyer's market, it is interesting to note that the national asking average for Class A space is approximately $29.
Source: CB Richard Ellis
Residential Real Estate Soft But Trending Upward
Bay Area home sales rose last month to the highest level for a July in four years, as deals above $500,000 continued to accelerate. The median sales price climbed above the prior month for the fourth consecutive month, lifted by the combination of more high-end transactions and fewer sales of lower-cost, lender-owned foreclosures.
In another sign of a gradual comeback in home financing, the percentage of Bay Area homes purchased last month with an adjustable-rate mortgage rose to 6.6 percent - up from a record low of 3.0 percent in January 2009.
"In the San Francisco Bay Area and across California we continue to see the market moving gradually back toward a more normal balance of sales across all price ranges," said John Walsh, MDA DataQuick president. "Evidence is mounting that in some areas we've approached at least a soft bottom for home prices. But we continue to view that possibility with an abundance of caution given all of the uncertainty over future foreclosure inventories and ongoing job cuts. The market remains vulnerable."
A total of 8,771 new and resale houses and condos sold in the nine-county Bay Area last month. That was up 1.5 percent from 8,664 in June and up 15.6 percent from 7,586 in July 2008.
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Sales Volume | Median Price | ||||
| All homes | Jul-08 | Jul-09 | %Chng | Jul-08 | Jul-09 | %Chng |
| Alameda | 1,428 | 1,780 | 24.6% | $440,000 | $340,000 | -22.7% |
| Contra Costa | 1,730 | 1,888 | 9.1% | $350,000 | $261,000 | -25.4% |
| Marin | 277 | 265 | -4.3% | $770,000 | $650,000 | -15.6% |
| Napa | 125 | 134 | 7.2% | $440,000 | $342,500 | -22.2% |
| Santa Clara | 1,660 | 2,199 | 32.5% | $585,500 | $490,000 | -16.3% |
| San Francisco | 609 | 543 | -10.8% | $749,000 | $642,426 | -14.2% |
| San Mateo | 648 | 692 | 6.8% | $670,000 | $574,750 | -14.2% |
| Solano | 592 | 715 | 20.8% | $275,000 | $200,000 | -27.3% |
| Sonoma | 517 | 555 | 7.4% | $362,500 | $328,000 | -9.5% |
| Bay Area | 7,586 | 8,771 | 15.6% | $470,000 | $395,000 | -16.0% |
Source: DQNews.com
Updated SFO Traffic Static
Year-to-year comparisons through June 2009 indicate that the number of domestic travelers increased 1.2%, while total airport passengers decreased 1%. The number of international travelers decreased 8%.
Sunny Days for SFCED Client Intersolar
The Intersolar North America conference, arguably the most diverse global business-to-business solar exhibition in the United States, surpassed expectations and shattered attendance records for its second straight year in San Francisco. The event, co-hosted by Intersolar North America and SEMICON West, presented more than 560 solar exhibitors to approximately 17,000 trade visitors from 90 countries. Intersolar North America alone featured 444 exhibitors, up from 210 exhibitors last year.
Companies from 23 countries exhibited products during the three-day event in mid-July, reflecting the incredible international potential of the solar market. San Francisco looks forward to hosting Intersolar North America again next year on July 13-15.
Source: Intersolar.us
2009 San Francisco Economic Forecast Conference
On Wednesday, September 16, at the Hyatt Regency Embarcadero, a line-up of business and academic leaders will present economic predictions, discuss the housing, mortgage and stock markets, and shed light on California's budget turmoil. This one-day conference will include candid conversation with renowned economists Christopher Thornberg and Jon Haveman, California State Controller John Chiang, and representatives from two major budget reform groups, California Forward and the Bay Area Council Economic Institute. To receive a registration discount from $75 to $50, please use the SFCED discount code: sfced09.
To register for this event visit: http://www.beaconecon.com/events/sanfrancisco09.php
Source: Beacon Economics
For more information please contact
Dennis
Conaghan
Executive Director
415.352.8819
Email: dconaghan@sfced.org
www.sfced.org