By Press Release
California Job Growth, Labor Force Expands In Latest Numbers
Unemployment Rate Falls To New Record Low; Annual Labor Force Growth Cause For Concern
From a year-over-year perspective, California has added 320,000 jobs as of September 2019, the largest year-over-year increase for the state in 13 months. This is equivalent to a 1.9% year-over-year increase, which is a better showing than the nation’s 1.4% rate.
California’s unemployment rate dipped to 4.0% in September, representing a new record low. Still, declining labor force growth is cause for concern. After sixth consecutive months of decline, the state’s labor force expanded by 20,700 in September. From September 2018 to September 2019, California’s labor force decreased by 0.3% (-62,400). However, the state’s faster growing regions are continuing to attract workers at a healthy rate.
“While it is noteworthy that the state’s unemployment rate hit a new low this month, the new record is partly the result of the state’s job gains, but also due to a labor force has shown little or no growth since the start of the year,” said Robert Kleinhenz Executive Director of Research at Beacon Economics. “However, with yearly job gains in nearly every one of the state’s major industries, including those most affected by trade conflicts, this is a reassuring report, especially at a time when there are concerns that the economy is cooling.”
- Administrative Support led the way in monthly job gains in September, growing payrolls by 11,000 positions and accounting for more than half of the state’s monthly increase. This industry has posted solid increases over the last year, which has helped push year-over-year growth in the sector to robust 3.4%. Manufacturing also had a strong month, boosting payrolls by 4,100 positions. Year-over-year gains for Manufacturing now stand at a steady 1.0%.
- Other sectors posting strong gains in September were Health Care (+3,200), Transportation, Warehousing, and Utilities (+1,800), and Retail Trade (+1,700). From September 2018 to September 2019, in percentage terms, Educational Services (+3.5%) and Construction (+3.5%) led the pack, followed by Administrative Support (+3.4%), Professional, Scientific and Technical Services (+3.2%), Health Care (+3.0%), Information (+2.5%), and Leisure and Hospitality (+2.3%).
- Despite overall growth in the state, a handful of sectors decreased payrolls in September. Other Services posted the largest declines, shrinking payrolls by 2,000 and pushing year-over-year growth into negative territory. Other sectors posting sizeable declines last month were Information (-1,500), Wholesale Trade (-800), and Government (-700). In percentage terms, Retail Trade declined 0.5% from September 2018 to September 2019, the largest decrease, followed by Wholesale Trade (-0.3%) and Other Services (-0.1%).
- Regionally, job growth was led by Southern California in the latest numbers. The Inland Empire captured the top spot, boosting payrolls by 6,300 positions in September. That was followed by San Diego (+4,900). From a year-over-year perspective, the Inland Empire (+2.3%) has experienced the fastest rate of jobs growth, followed by San Diego (+1.8%), Los Angeles (MD) (+1.1%), and Orange County (1.1%).
- In the San Francisco Bay Area, San Francisco (MD) led the pack increasing payrolls by 1,300 jobs over the month. That was followed by San Rafael (MD) (+600), San Jose (+400), and the East Bay (+200). From a year-over-year perspective, San Francisco (MD) (+3.4%) grew the fastest, followed by San Jose (+3.1%), the East Bay (+1.9%), San Rafael (MD) (+1.5%), Napa (+1.5%), and Santa Rosa (+1.1%).
- In the Central Valley, Sacramento topped the list, increasing payrolls by 2,100 positions in September. That was followed by Chico (+1,100), Fresno (+700), Madera (+500), and Stockton (+400). From a year-over-year perspective, Fresno (3.4%) was the fastest growing, followed by Merced (+2.9%), Madera (+2.8%), and Sacramento (+1.8%).
- On the Central Coast, Santa Cruz led the way, boosting payrolls by 400 jobs over the month. That was followed by San Luis Obispo, where payrolls expanded by 300 positions. From a year-over-year perspective, Salinas (+3.6%) added jobs at the fastest rate, followed by Santa Barbara (+2.6%), Santa Cruz (+1.9%), and San Luis Obispo (+1.6%).
San Francisco based Stockbridge acquires 100% leased assets in premier IE West location
Cushman & Wakefield’s EDSF also sources acquisition financing for transaction
Cushman & Wakefield announced the firm has arranged the sale of a core industrial portfolio totaling 540,478 square feet in Southern California’s premier Inland Empire West (IEW) submarket. The portfolio consists of two freestanding Class A buildings located a few miles apart at 3351 E Philadelphia St and 4450 E Lowell St in the city of Ontario. The buildings are 100% leased to prominent tenants in the distribution and retail industries.
San Francisco based Stockbridge acquired the two-property portfolio from Principal Asset ManagementSM a global financial and investment management firm. The portfolio sold for $142.25 million.
Jeff Chiate, Jeffrey Cole, Rick Ellison, and Matt Leupold of Cushman & Wakefield’s National Industrial Advisory Group—West represented the seller in the transaction. The firm’s Phil Lombardo, Chuck Belden and Andrew Starnes also provided leasing advisory.
Additionally, a Cushman & Wakefield Equity, Debt & Structured Finance (EDSF) team of Rob Rubano, Brian Share, Joseph Lieske, Max Schafer, and Becca Tse collaborated in sourcing acquisition financing for the transaction.
“Stockbridge has acquired an institutional-quality industrial portfolio with a phenomenal infill location combined with strong tenancy and premium distribution features and functionality. Both properties have maintained a historical occupancy of 100% for nearly a decade speaking to the tenant demand for industrial buildings of this quality and location,” said Jeff Chiate, Executive Vice Chair. “Additionally, with current rents below market rate, the buyer has a compelling mark-to market opportunity along with existing durable cash flow, providing a variety of value-add strategies.”
The properties offer convenient access to Southern California’s robust freeway network and other vital nodes of transit such as Ontario International Airport, the Los Angeles & Long Beach Ports, and LAX International Airport (60 miles). Access to a deep labor pool and robust consumer population also makes the region a superior industrial location.
According to Cushman & Wakefield’s latest industrial market report, the Inland Empire West submarket had a vacancy rate of 5.4% in Q1 2024, representing the tightest submarket in the broader Inland Empire market. Additionally, IEW achieved nearly 1 million square feet of positive net absorption (occupancy growth) in the first quarter of 2024.
Stater Bros. Charities, the philanthropic arm of Stater Bros. Markets, partnered with Reyes Coca-Cola Bottling again this year for their Give Back program during National Military Appreciation Month. The program ran for the entire month of May, during which Reyes Coca-Cola Bottling committed to donating $0.25 per eligible product purchased to the Bob Hope USO. Reyes Coca-Cola Bottling donated $15,000, and Stater Bros. Charities matched their donation for a total contribution of $30,000.
A check presentation occurred during a K-EARTH 101 radiothon benefiting the Bob Hope USO. The radiothon took place at the Bob Hope USO at LAX (Los Angeles International Airport) on June 29, 2023, where Stater Bros. Charities and Reyes Coca-Cola Bottling presented Bob Hope USO with a $30,000 check.
Bob Hope USO’s mission is to strengthen America’s military service members by keeping them connected to family, home and country, throughout their service to the nation. The Give Back program is a unique opportunity to show gratitude and support to the brave men and women who risk their lives for our freedoms and to care for their families while they are away from home on deployment.
“Stater Bros. Markets has a long history of supporting veterans, service members, and their families,” said Danielle Oehlman, Director, Stater Bros. Charities. “We are so pleased to partner with our friends at Reyes Coca-Cola Bottling and the USO to give back to those who have given so much for us.”
Lorin Stewart, President, USO West Region, said, “We are deeply grateful to Stater Bros. Charities and Reyes Coca-Cola Bottling for being sustaining partners of the USO. The Give Back program embodies the essence of the USO mission by enabling the community at large to come together to support and give thanks to our armed forces and their brave military families in an impactful way.”
Funds will support the Bob Hope USO and USO San Diego Center operations, including programs and services that strengthen the social, mental, physical, and emotional well-being of local military service members, their families, and their communities.
By Press Release
BDK Logistics Intelligence Fully Leases 114,190 SF Industrial Facility in Corona, CA
Cushman & Wakefield represents landlord in lease in SoCal’s Inland Empire
Cushman & Wakefield announced that BDK Logistics Intelligence, Inc. has signed a lease for an entire 114,190-square-foot industrial facility at 1161 Olympic Drive in Corona, California. Situated in Southern California’s renowned Inland Empire, the building is owned by Monterey Rancho Mirage, LLC, which was represented by Brett Lockwood and Rick Ellison of Cushman & Wakefield in the transaction.
“We are pleased to welcome BDK to the property as a quality industrial tenant that is expanding its presence in the market, which it also currently occupies multiple warehouse facilities,” said Director Brett Lockwood. “Our client was instrumental in helping this deal transact as there were many variables that needed to be navigated which led to this lease coming together quickly and successfully.”
1161 Olympic Drive is a quality freestanding building situated on ±4.8 acres and features 20 dock high loading doors. The property is conveniently located off Interstate 15 near the confluence of SR 91 and is proximate to the extensive freeway network traversing the entire Greater Los Angeles region and into other major markets in and out of state.
According to Cushman & Wakefield’s latest Q2-2023 quarterly report, the Inland Empire industrial market posted an overall vacancy of 3.4% and has recorded more than 2.7 million square feet of positive net absorption through the first half of 2023.
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