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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
Office of Economic Development
Work Session Presentation to the Berkeley City Council
December 15, 2015
■ 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
ic Devel velop
ent | 510.981.7530
■ The Berkeley economy is strong and getting stronger. ■ Some structural challenges to broad economic
■ Berkeley is implementing programs and strategies to address these challenges. ■ OED is releasing three publications to assist policy- makers and community members.
City of Berkeley | Offic ice e of Econom
ic Devel velop
ent | 510.981.7530
Photos: Berkeleyside
■ 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
City of Berkeley | Offic ice e of Econom
ic Devel velop
ent | 510.981.7530
Photo: John Northmore Roberts & Associates
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.
0% 2% 4% 6% 8% 10% 12% 14% 2000 2002 2004 2006 2008 2010 2012 2014
Unemployment Rates,
Q2 2000-2015
City of Berkeley Alameda County California
City of Berkeley | Offic ice e of Econom
ic Devel velop
ent | 510.981.7530 Source: CA Employment Development Department, Monthly Labor Force Data
Photos: Carter Young
Key Finding: The numb mber of jobs bs and d bu busi siness sses s in Berk rkele eley y is s increasing asing.
6,000 8,000 10,000 12,000 14,000 16,000 18,000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Ac Active Busine siness ss Licenses, nses, 2005-2014
Non-Female, Minority- Owned, 13% Non-Minority, Female- Owned, 21% Minority & Female- Owned, 13% Non-Minority, Non-Female Owned, 53%
Busi siness ness Licens nses es by Ownersh ship p Type, , 2014
City of Berkeley | Offic ice e of Econom
ic Devel velop
ent | 510.981.7530
Source: City of Berkeley, Business License Database
Key Finding: Offic ice va vacan ancy cy rates are do down.
0% 5% 10% 15% 20% 25% 30% 35% 2Q14 3Q14 4Q14 1Q15 2Q15
Alameda Ber erkeley keley Emeryville Oakland Richmond Market-Area Average
Office ce Ava vailability, , East st Bay Citi ties, es, 2014Q2 Q2 - 2015 Q2
City of Berkeley | Offic ice e of Econom
ic Devel velop
ent | 510.981.7530 Source: Newmark Cornish & Carey, I-880/I-80 2Q15 Office Market Report
WeWork Berkeley Photo: Berkeleyside
Key Finding: Gro round f d floor retail l va vacancy cy rates are do down.
Distr tric ict 2008 Q3 Q3 2010 Q1 Q1 2012 Q2 Q2 2014 Q4 Q4 2015 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% Vac acanc ancy Rates es by Distr trict ict, , Calc lculat lated ed by Squar quare Footag tage, e, 2008 – 2015
Trending: Experiential Retail
City of Berkeley | Offic ice e of Econom
ic Devel velop
ent | 510.981.7530
Source: City of Berkeley, Office of Economic Development Field Research
Key Finding: Sales es tax revenues are increasing. sing.
City of Berkeley | Offic ice e of Econom
ic Devel velop
ent | 510.981.7530
Source: MUNI Services
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.
100 200 300 400 500 600 700 800 900 1000 $0 $0 $20 $20 $40 $40 $60 $60 $80 $80 $100 $100 $120 $120 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
Total Construction Value, In Millions
Build ldin ing Permits mits in Berkele ley by Quar arter, , Constr structio tion Value lue and #, 2001 Q1 - 2015 Q3
Sum of Permit Valuation Count of Permits
# of Permits
Construction of Wareham Development’s 740 Heinz
City of Berkeley | Offic ice e of Econom
ic Devel velop
ent | 510.981.7530
Source: City of Berkeley, Building Permits Database
City of Berkeley | Offic ice e of Econom
ic Devel velop
ent | 510.981.7530 Source: City of Berkeley, Planning Department
■ Economic Equity ■ Housing ■ Cost of Doing Business ■ Levels of Discretion ■ Public Realm
City of Berkeley | Offic ice e of Econom
ic Devel velop
ent | 510.981.7530
Photos: Ira Serkes
■ 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
ic Devel velop
ent | 510.981.7530
■ 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
ic Devel velop
ent | 510.981.7530
January – June (Q1 and Q2) 2015
Dis Disclaimer 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.
Office of Economic Development
City of Berkeley | Offic ice e of Econom
ic Devel velop
ent | 510.981.7530
city of
■ Berkeley’s average unemployment rate for Q2 2015 (April – June) was 3.7 percent, down 0.9 percent from the same period during the previous year. ■ In comparison, Alameda County’s average Q2 unemployment rate in Q2 was 4.5 percent, while California’s was 6.2 percent. ■ Berkeley’s unemployment rate has fallen below its pre-recession low-point in 2006. ■ As of Q4 2014, there were 65,423 jobs located in Berkeley. Berkeley’s jobs to employed residents ratio is calculated at approximately 1.11. ■ The industry sectors that showed the greatest job growth in Berkeley from 2013 to 2014 include beverage stores, chemical manufacturing, and construction and trade contractors.
16 Year Labor
Force ce Employed loyed Resid idents ents Unemployment employment Rate
2015 61,267 59,000 3.67 2014 60,500 57,767 4.57 2013 60,167 56,667 5.77
Berkeley Q2 Averages, 2013-2015
labor force & employment figures
0% 2% 4% 6% 8% 10% 12% 14% 2000 2002 2004 2006 2008 2010 2012 2014
Unemployment Rates,
Q2 2000-2015
City of Berkeley Alameda County California
Sources: CA Employment Development Department, Monthly Labor Force Data; Bureau of Labor Statistics, Quarterly Census of Employment and Wages
employm yment t & jobs bs: fast facts
Berkeley is currently experiencing a construction boom that is unlike anything the City has seen before. In 2015, the number and total valuation of building permits spiked significantly. Whereas over the past decade the total valuation of building permits typically fell between $20 and $40 million per quarter, in the latest quarter that number has spiked to over $100
renovations. There are currently 22 multi-unit (5+ units) housing projects totaling 1,414 housing units that are entitled for development or under construction. An addition nal 5 multi-unit projects totaling 556 units are proposed and seeking entitlement. By comparison, a total of 858 units have been constructed since 2005. The majority of these development projects are clustered along University Avenue, San Pablo Avenue, and in the Downtown and Telegraph districts.
construction & pipeline
100 200 300 400 500 600 700 800 900 1000 $0 $20 $40 $60 $80 $100 $120 2001 Q1 2001 Q4 2002 Q3 2003 Q2 2004 Q1 2004 Q4 2005 Q3 2006 Q2 2007 Q1 2007 Q4 2008 Q3 2009 Q2 2010 Q1 2010 Q4 2011 Q3 2012 Q2 2013 Q1 2013 Q4 2014 Q3 2015 Q2
Total Construction Value, In Millions
Build ldin ing Permits its in Berk rkele ley by Quar arter, , Constr structio tion Value lue and #, 2001 Q1 - 2015 Q3
Sum of Permit Valuation Count of Permits
# of Permits
Multi-Unit it Proj
ects ts (5+ Un Units) s), 2005 to Prese sent
■ Summary: Information about commercial districts ■ Data sources: Sales tax data, Commercial Occupancy Data ■ Audiences: Community stakeholders, policy-makers ■ Production: Updated annually
City of Berkeley | Offic ice e of Econom
ic Devel velop
ent | 510.981.7530
Photo: Carter Young
2014-2015 snapshot
Downtown Berkeley serves as the City’s core commercial district, meeting the daily needs
The district benefits from a significant concentration of arts and entertainment (15%
district). Additionally, a number of new office tenancies and residential developments contribute to increased pedestrian activity in the area. As of Q3 2015, the vacancy rate in Downtown Berkeley had fallen to 8.4%. Sales tax revenue generated by food and beverage services businesses continues to rise, mirroring the Citywide trend.
15.1% 13.2 .2% 10.7 .7% 11.2% 8.4%
0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 2008 2010 2012 2014 2015
Groun
d Floor
mercia ial l Vacancy ancy Rate e (by Squar quare e Footage)
, 2008-2015
Arts, s, Enterta ertainmen inment t & Recrea eati tion
, 15.2% 2% Busines iness s / Profess essiona ional Services ces, , 8.3% Food & Bevera erage ge Services ces, , 24.0% 0% Office e / Other er Non-Re Retail tail, , 7.6% Person sonal Services ces, , 5.8% Public ic and Nonprof profit t Entit ities es, , 1.8% Retail il, , 25.7% 7% Trade e Services ices, , 3.3% Vacant, , 8.4% $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 2008 2010 2012 2014
(Thousands)
Sales les Tax Reven enue e by Sec ector
Business & Professional Services Food & Beverage Services Other/Non-Retail Personal Services Retail
Business Mix (by y Squar are e Footag age) e), , 2015
■ Summary: Information about Berkeley’s population, business sectors ■ Data sources: US Census Bureau, OED data compilation ■ Primary Audiences: Businesses and developers making locational decisions ■ Production: Updated periodically, as necessary, at least once every 5 years
City of Berkeley | Offic ice of Econom
ic Devel elopm
ent | 510.981.7530
& Economic
city of
O f f i c e o f E c o n o m i c Development
Discl claim imer: er: 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
document at any time.
Demographic Snapshot
Population 114,037 Median Age 32 Housing Units 49,922 Owner-Occupied Units 19,128 (42%) Median Home Sales Price (2014) $785,000 Average HH Income $97,635 Bachelor’s Degree or Higher (age 25+) 69.7%
Sources: US Census Bureau, 2009-2013 ACS Estimates, 2015 City of Berkeley Housing Element
about Amenities
10,000 10,000 00 to 04 10 to 14 20 20 t to 2 24 30 to 34 40 to 44 50 to 54 60 to 64 70 to 74 80 to 84 Population Age Range Male Female
Age & Gender
Non- Hispanic White, 56% Asian, 20% Hispanic/ Latino 10%
Black/
African- American 9% Two or More Races, 4% Other, 1%
Race & Ethnicity
Berkeley is a “City of Firsts,” where a culture of innovation and an engaged citizenry inspire new industries, trendsetting cuisine and a nationally recognized arts scene. Berkeley is also a city of neighborhoods alive with a terrific quality of life including walkable streets, bike routes, access to transit, excellent schools, and thriving commercial districts.
District K-12 schools
in Downtown
Incorporated: 1878 Encompasses: 10.5 square miles Average Annual Temperature: 58° F (48°F low, 68°F high)
District that draws over 2 million visitors annually
districts
Sources: Downtown Berkeley Association; California Employment Development Department Source: US Census Bureau, 2009-2013 ACS Estimates
Acc ccess ssib ible le
Transit Access
Rail: Bay Area Rapid Transit and Amtrak Bus: AC Transit , 10+ lines Auto: 5,000+ parking spaces in downtown, with 2,777 in off-street lots and garages Airports: Oakland International (12 mi), San Francisco International (20 mi), San Jose International (45 mi) Deep Water Ports: Oakland (6 mi), Richmond (8 mi), San Francisco (12 mi)
BERKELEY is centrally located within the Bay Area, which is the
nation’s fifth-largest metro region and home to 8.4 million people. Downtown Berkeley is just a direct 22-minute train ride and a 24- minute drive from San Francisco’s Financial District. Ideal location for business: With two interstate highways and a transcontinental rail line passing through the city limits, two major airports and three principal shipping ports close by, few places are as accessibly located for business as Berkeley. Year-round foot traffic: Downtown Berkeley enjoys some of the highest pedestrian volumes in the Bay Area outside of San
visit the City of Berkeley each year, and new attractions are expected to increase that number to nearly two million by 2018.
10,000 15,000 20,000 25,000 30,000 Downtown Berkeley 12th Street / Oakland City Center Fremont Walnut Creek Richmond
BART RT Ridershi ship
(based on a doubling of average weekday exits)
Nearly 26,000 riders pass through the Downtown Berkeley BART station per weekday, making it the busiest station in the entire BART system
an
Source: Bay Area Rapid Transit
Pacific Film Archive (opening 2016) 10.1947 Center Street Lobby Gallery 11.Berkeley Central Arts Passage 12.Addison Street Windows Gallery 13.Civic Center Juried Art Exhibition 14.Worth Ryder Art Gallery 15.Headquarters 16.Paulson Bott Press 17.Kala Art Institute 18.La Pena Cultural Center 19.Art House Gallery and Cultural Center 20.Bancroft Library Garden Anchored by a renowned theatre, a fabled live-music venue, as well as an art-house multiplex, the Downtown Arts District brings over 1.7 million residents and visitors to Downtown Berkeley per year, to dine at its restaurants, drink in its wine bars and browse its shops. And with both a new art museum and another live-music venue under development, this number is expected to grow to over two million by 2016.
Source: SeeBerkeleyArt.org
Berkeley’s Downtown
Arts ts Distr trict ict Ven enue Annual al Patrons
Berkeley Repertory Theater 250,000 Freight & Salvage 90,000 Aurora Theater 30,000 Movie Theaters 683,000 Centeral Library 685,000 Jazzschool 7,000 Other Venues 8,000 Berkeley Art Museum / Pacific Film Archive (coming soon) 200,000* UC Theater (coming soon) 120,000*
* Projected
Michael Caplan MCaplan@cityofberkeley.info (510) 981-7530 Jordan Klein JKlein@cityofberkeley.info (510) 981-7534