Office of Economic Development Work Session Presentation to the Berkeley City Council December 15, 2015
Agenda Economic Trends in Berkeley & the Region ■ Review New OED Publications ■ Berkeley Demographic & Economic Profile – Citywide Economic Dashboard – Commercial District Dashboards – Q & A ■ City of Berkeley | Offic ice e of Econom omic ic Devel velop opmen ent | 510.981.7530
Key Takeaways ■ The Berkeley economy is strong and getting stronger. ■ Some structural challenges to broad economic opportunity persist. ■ Berkeley is implementing programs and strategies to address these challenges. ■ OED is releasing three publications to assist policy- makers and community members. Photos: Berkeleyside City of Berkeley | Offic ice e of Econom omic ic Devel velop opmen ent | 510.981.7530
Data Sets Census Data on Income and Employment ■ Bureau of Labor Statistics Employment Data ■ Commercial occupancy data from commercial brokers, direct ■ data collection by OED and business district organizations Sales T ax Data ■ Business License Data ■ Building permits & housing pipeline ■ Photo: John Northmore Roberts & Associates City of Berkeley | Offic ice e of Econom omic ic Devel velop opmen ent | 510.981.7530
Employment & Business Development Key Finding: Berkeley’s unemployment rate is down and the numb mber of jobs bs within hin the City y is increas asin ing. g. Unemployment Rates, Q2 2000-2015 14% 12% 10% 8% 6% 4% 2% 0% 2000 2002 2004 2006 2008 2010 2012 2014 City of Berkeley Alameda County California Photos: Carter Young Source: CA Employment Development Department, Monthly Labor Force Data City of Berkeley | Offic ice e of Econom omic ic Devel velop opmen ent | 510.981.7530
Employment & Business Development Key Finding : The numb mber of jobs bs and d bu busi siness sses s in Berk rkele eley y is s increasing asing. Ac Active Busine siness ss Licenses, nses, 2005-2014 Busi siness ness Licens nses es by Ownersh ship p Type, , 2014 18,000 16,000 Non-Female, Minority- 14,000 Owned, 13% Non-Minority, Non-Female 12,000 Owned, 53% Non-Minority, 10,000 Female- Owned, 21% 8,000 Minority & Female- 6,000 Owned, 13% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Source : City of Berkeley, Business License Database City of Berkeley | Offic ice e of Econom omic ic Devel velop opmen ent | 510.981.7530
Commercial Activity down . Key Finding: Offic ice va vacan ancy cy rates are do Office ce Ava vailability, , East st Bay Citi ties, es, 2014Q2 Q2 - 2015 Q2 35% Alameda 30% Ber erkeley keley 25% Emeryville 20% 15% Oakland 10% Richmond 5% WeWork Berkeley Market-Area 0% Photo: Berkeleyside 2Q14 3Q14 4Q14 1Q15 2Q15 Average Source: Newmark Cornish & Carey, I-880/I-80 2Q15 Office Market Report City of Berkeley | Offic ice e of Econom omic ic Devel velop opmen ent | 510.981.7530
Commercial Activity Key Finding: Gro round f d floor retail l va vacancy cy rates are do down. Vac acanc ancy Rates es by Distr trict ict, , Calc lculat lated ed by Squar quare Footag tage, e, 2008 – 2015 2008 2010 2012 2014 2015 Distr tric ict Q3 Q3 Q1 Q1 Q2 Q2 Q4 Q4 Q3 Q3 Downtown 15.1% 13.2% 10.7% 11.2% 8.4% Elmwood 10.0% 10.7% 10.8% 2.0% 2.0% North Shattuck 4.1% 10.5% 4.5% 1.6% 2.1% San Pablo 6.0% 6.6% 7.9% 5.9% 7.3% Solano 6.0% 6.3% 4.4% 4.2% 3.5% South Berkeley 8.7% 11.0% 12.3% 8.9% 7.9% Telegraph 17.2% 15.3% 17.9% 12.7% 7.1% West Berkeley 8.6% 4.0% 3.9% 3.3% University 10.9% 10.1% Citywide ide Aver erage age 10.1% 10.9% 8.1% 6.6% 5.9% Source: City of Berkeley, Office of Economic Development Field Research Trending: Experiential Retail City of Berkeley | Offic ice e of Econom omic ic Devel velop opmen ent | 510.981.7530
Commercial Activity Key Finding: Sales es tax revenues are increasing. sing. Source: MUNI Services City of Berkeley | Offic ice e of Econom omic ic Devel velop opmen ent | 510.981.7530
Development Key Finding : Co Construction tion has s reached d record d levels, ls, and th d there is s a high h volume me of housing units in de developme pment. t. Build ldin ing Permits mits in Berkele ley by Quar arter, , Constr structio tion Value lue and #, 2001 Q1 - 2015 Q3 $120 $120 1000 Total Construction Value, In Millions 900 $100 $100 800 700 # of Permits $80 $80 600 $60 $60 500 400 $40 $40 300 200 $20 $20 100 $0 $0 0 Construction of Wareham 2001 Q1 2001 Q3 2002 Q1 2002 Q3 2003 Q1 2003 Q3 2004 Q1 2004 Q3 2005 Q1 2005 Q3 2006 Q1 2006 Q3 2007 Q1 2007 Q3 2008 Q1 2008 Q3 2009 Q1 2009 Q3 2010 Q1 2010 Q3 2011 Q1 2011 Q3 2012 Q1 2012 Q3 2013 Q1 2013 Q3 2014 Q1 2014 Q3 2015 Q1 2015 Q3 Development’s 740 Heinz Sum of Permit Valuation Count of Permits Source: City of Berkeley, Building Permits Database City of Berkeley | Offic ice e of Econom omic ic Devel velop opmen ent | 510.981.7530
Multi-Unit Projects (5+ Units), 2005 to Present Source: City of Berkeley, Planning Department City of Berkeley | Offic ice e of Econom omic ic Devel velop opmen ent | 510.981.7530
Challenges & Opportunities Amid the Boom ■ Economic Equity ■ Housing ■ Cost of Doing Business ■ Levels of Discretion ■ Public Realm Photos: Ira Serkes City of Berkeley | Offic ice e of Econom omic ic Devel velop opmen ent | 510.981.7530
Strategies for Equitable Economic Development ■ Robust Workforce Development Program ■ Local Hire ■ Access to Capital ■ Internship Opportunities ■ Women Entrepreneurs ■ Corner Store Initiative ■ Focus on South Berkeley City of Berkeley | Offic ice e of Econom omic ic Devel velop opmen ent | 510.981.7530
Berkeley Economic Dashboard ■ Summary: Information about trends in employment, business development, real estate ■ Data sources: Bureau of Labor Statistics, Sales Tax Data, Commercial Occupancy Data, City of Berkeley datasets ■ Audiences: Policy-makers, community stakeholders ■ Production: Updated every 6 months (as staffing allows) City of Berkeley | Offic ice e of Econom omic ic Devel velop opmen ent | 510.981.7530
city of Economic Dashboard January – June (Q1 and Q2) 2015 Office of Economic Development Disclaimer Dis laimer: The City of Berkeley makes no representations about the suitability of the information contained in this document for any purpose. The information Is provided "as is" without warranty, either express or implied, of any kind. The published document may contain technical inaccuracies or typographical errors. Changes are periodically added to the information herein. The City of Berkeley may make improvements and/or changes to the document at any time. City of Berkeley | Offic ice e of Econom omic ic Devel velop opmen ent | 510.981.7530
labor force & employment figures employm yment t & jobs bs: fast facts Berkeley Q2 Averages, 2013-2015 ■ Berkeley’s average unemployment rate Labor or Employed loyed Unemployment employment Year for Q2 2015 (April – June) was 3.7 Force ce Resid idents ents Rate percent, down 0.9 percent from the 2015 61,267 59,000 3.67 same period during the previous year. 2014 60,500 57,767 4.57 ■ In comparison, Alameda County’s average Q2 unemployment rate in Q2 2013 60,167 56,667 5.77 was 4.5 percent, while California’s was 6.2 percent. Unemployment Rates, ■ Berkeley’s unemployment rate has Q2 2000-2015 fallen below its pre-recession low-point in 2006. 14% 12% ■ As of Q4 2014, there were 65,423 jobs located in Berkeley. Berkeley’s jobs to 10% employed residents ratio is calculated at 8% approximately 1.11. 6% ■ The industry sectors that showed the greatest job growth in Berkeley from 4% 2013 to 2014 include beverage stores, 2% chemical manufacturing, and construction and trade contractors. 0% 2000 2002 2004 2006 2008 2010 2012 2014 Sources: CA Employment Development Department, Monthly City of Berkeley Alameda County California Labor Force Data; Bureau of Labor Statistics, Quarterly Census of Employment and Wages 16
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