The State of the Business in Adelanto 2018 presenting sponsors C.A.R.S & Tri State Community Health
Please join us for our The State of the Business in Adelanto on February 14, 2018 Guest speaker will be Jason Lamoreaux with Coldwell Banker Commercial Presenting Sponsors C.A.R.S & Tri-State Community Healthcare
1. The State of Business
City of Adelanto
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2. Economic Recovery
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$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
$18,000,000
$20,000,000
2010 2011 2012 2013 2014 2015 2016 2017 2018
City of Adelanto - General Fund Summary
Revenue Expenses
3. Population Growth
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-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
Population Growth by Percentage
Adelanto County State US
4. Population Growth
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0
5000
10000
15000
20000
25000
30000
35000
40000
199019911992199319941995199619971998199920002001200220032004200520062007200820092010201120122013201420152016
Adelanto Population Growth
5. Unemployment Rate
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0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Adelanto Nation California SB County
6. Population Drivers
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• Affordable Housing
• 55% - Nationally
• 28% - California
• 22% - Los Angeles
• 43% - San Bernardino County
• 67% - Adelanto
• Job Creation
• 1m SF of Cannabis = 850 base jobs
• Secondary employment jobs equal to base jobs
• Increase would support 600 to 700 housing units
• Cost of Living
7. Business Drivers
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1. Adelanto School District
2. Apex Bulk Commodities
3. Geo Group
4. Northwest Pipe
5. Molded Fiberglass Companies
6. A&M Framers
7. Temp Trans LLC
8. Continental Fiberglass
9. Safeway Signs
10.General Atomics Aeronautical
8. By the Numbers
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• 8,847 - Adelanto’s Active workforce
• 26% are employed within the region
• 74% commute outside of the region
• 4,496 jobs in Adelanto, 774 held by residents
• 29% Manufacturing
• 15% Administration & Support
• 13% Education
• 11% Professional, Technical & Scientific
• 10% Health Care & Social Assistance
16. Cannabis Stats
• 74% of all Cannabis sales are illicit
• 24% annual growth rate anticipated
over next five years
• $22.6 Billion in sale by 2021
• California is the largest US market
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17. Challenges
• Banking
• Financing
• Federal Enforcement
• Transition from Underground
• Saturation
• Utilities
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18. Residential Real Estate
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• 2006 - $289,500
• 2011 - $80,500, 72.2% reduction
• 2018 – 205,000, 255% increase,
however, 70.7% of previous high
• Median Square footage – 1,500
19. Residential Real Estate
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0
200
400
600
800
1000
1200
$-
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Adelanto - Housing Market Historical Analysis
Median Sales Price Units Sold
20. Commercial Real Estate
Office
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• 145,017 SF of Office Space
• $0.77 PSF lease rates
• 0.0% Vacancy rate
• No Inventory
21. Commercial Real Estate
Retail
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• 302,089 SF of Retail Space
• $0.90 PSF lease rates
• 0.7% Vacancy rate
• No Inventory, Underserved
22. Commercial Real Estate
Industrial
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• 3,391,530 SF of Industrial Space
• $2.54 PSF lease rates
• 12.6% Vacancy rate
• 202,348 SF Negative Absorption
• Transitioning Market, New Deliveries
23. Impact on Industrial Space
• Sale price PSF has increased 722%
• Lease rates have increased 917%
• Land value has increased 1286%
• Reduction in Valley wide vacancy
• Speculators
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24. Lease Rates – High Desert
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25. Lease Rates - Adelanto
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26. Vacancy Rate by City
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• 12.6% - Adelanto
• 2.1% - Apple Valley
• 27.0% - Barstow
• 8.6% - Hesperia
• 5.1% - Victorville
27. New Developments
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• AM/PM project – Air Expressway/Hwy 395
• Verbena Retail Center – 98,270 SF Center Verbena
Road/Palmdale Road
• AirCore Cookware – 100,000 SF Manufacturing
• 116-unit SFR Subdivision – Poppy Rd/Johnson Rd
• 80-Unit SFR Subdivision – Jonathan Rd/Cactus Rd
• 125-unit Subdivision with Retail Component – Racoon
Rd/Seneca Rd
• Clark Pacific –Manufacturing, Holly Road
29. Trends & Forecast
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• Decrease in Unemployment
• Increase in New Housing Starts
• Steady Increase in Housing Values
• Increase in Lease Rates for Office Space, no
Speculative Development
• Increase in Lease Rates for Retail Space, New
Development
• Decrease in Lease Rates and Vacancy for Industrial
Space, Continued Development