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Adelanto State of Business

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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

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Adelanto State of Business

  1. 1. The State of Business City of Adelanto COMMERCIAL TO THE CORESM // CBCWORLDWIDE.COM
  2. 2. Economic Recovery COMMERCIAL TO THE CORESM // CBCWORLDWIDE.COM $- $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. 3. Population Growth COMMERCIAL TO THE CORESM // CBCWORLDWIDE.COM -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% Population Growth by Percentage Adelanto County State US
  4. 4. Population Growth COMMERCIAL TO THE CORESM // CBCWORLDWIDE.COM 0 5000 10000 15000 20000 25000 30000 35000 40000 199019911992199319941995199619971998199920002001200220032004200520062007200820092010201120122013201420152016 Adelanto Population Growth
  5. 5. Unemployment Rate COMMERCIAL TO THE CORESM // CBCWORLDWIDE.COM 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. 6. Population Drivers COMMERCIAL TO THE CORESM // CBCWORLDWIDE.COM • 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. 7. Business Drivers COMMERCIAL TO THE CORESM // CBCWORLDWIDE.COM 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. 8. By the Numbers COMMERCIAL TO THE CORESM // CBCWORLDWIDE.COM • 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
  9. 9. Impact of Cannabis COMMERCIAL TO THE CORESM // CBCWORLDWIDE.COM
  10. 10. Acceptance COMMERCIAL TO THE CORESM // CBCWORLDWIDE.COM
  11. 11. Cannabis Industry COMMERCIAL TO THE CORESM // CBCWORLDWIDE.COM
  12. 12. Cannabis Industry COMMERCIAL TO THE CORESM // CBCWORLDWIDE.COM
  13. 13. Adelanto, CA – MMJ Zones
  14. 14. Cannabis Industry • Cultivation • Manufacturing • Distribution • Dispensaries • Delivery Services • Ancillary Services! COMMERCIAL TO THE CORESM // CBCWORLDWIDE.COM
  15. 15. Projected Growth COMMERCIAL TO THE CORESM // CBCWORLDWIDE.COM
  16. 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 COMMERCIAL TO THE CORESM // CBCWORLDWIDE.COM
  17. 17. Challenges • Banking • Financing • Federal Enforcement • Transition from Underground • Saturation • Utilities COMMERCIAL TO THE CORESM // CBCWORLDWIDE.COM
  18. 18. Residential Real Estate COMMERCIAL TO THE CORESM // CBCWORLDWIDE.COM • 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. 19. Residential Real Estate COMMERCIAL TO THE CORESM // CBCWORLDWIDE.COM 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. 20. Commercial Real Estate Office COMMERCIAL TO THE CORESM // CBCWORLDWIDE.COM • 145,017 SF of Office Space • $0.77 PSF lease rates • 0.0% Vacancy rate • No Inventory
  21. 21. Commercial Real Estate Retail COMMERCIAL TO THE CORESM // CBCWORLDWIDE.COM • 302,089 SF of Retail Space • $0.90 PSF lease rates • 0.7% Vacancy rate • No Inventory, Underserved
  22. 22. Commercial Real Estate Industrial COMMERCIAL TO THE CORESM // CBCWORLDWIDE.COM • 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. 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 COMMERCIAL TO THE CORESM // CBCWORLDWIDE.COM
  24. 24. Lease Rates – High Desert COMMERCIAL TO THE CORESM // CBCWORLDWIDE.COM
  25. 25. Lease Rates - Adelanto COMMERCIAL TO THE CORESM // CBCWORLDWIDE.COM
  26. 26. Vacancy Rate by City COMMERCIAL TO THE CORESM // CBCWORLDWIDE.COM • 12.6% - Adelanto • 2.1% - Apple Valley • 27.0% - Barstow • 8.6% - Hesperia • 5.1% - Victorville
  27. 27. New Developments COMMERCIAL TO THE CORESM // CBCWORLDWIDE.COM • 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
  28. 28. High Desert Corridor COMMERCIAL TO THE CORESM // CBCWORLDWIDE.COM
  29. 29. Trends & Forecast COMMERCIAL TO THE CORESM // CBCWORLDWIDE.COM • 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
  30. 30. Questions?
  31. 31. Jason Lamoreaux 760-684-8000 JL@CBCinland.com

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