The end of the year is often used as a time to reflect on the past 12 months and predict what may occur in the coming year. This article talks about the growth of jobs in San Diego over the last year and expected business trends in the area for 2012.
Job Growth in San Diego
At one point last year, concern grew over the threat of a double-dip recession. That threat has since evaporated as experts have seen steady but slow progress in the national economy and predict moderate growth in the year to come. Locally, the creation of jobs was better than expected in San Diego County and is expected to continue to improve next year. In 2009, San Diego County lost 60,000 jobs, but since that time the local economy has begun to replace the lost jobs. Over the last year 25,000 jobs were created in San Diego, and in 2012 around 30,000 additional jobs are expected to be created. The biggest concern regarding the creation of jobs is how a potential European recession may affect the U.S. economy.
Business Trends in San Diego
In real estate, the year 2012 may be a transformative one. According to one local economist featured in an article from The San Diego Union-Tribune, the San Diego area will transition to a significant increase in construction by the beginning of 2013. That means the coming year can be used to take preparatory steps for the upswing in the local economy. Such steps can include obtainment of long-term loans with low interest rates where interest rates are expected to change, investment in technology and stocks, exploitation of a new competitive advantage and ensuring the happiness of tenants and employees.
The overall real estate trends in San Diego for the coming year are dependent on the type of tenant. Apartment construction is expected to be the most robust as eventual job growth will allow renters who share space find their own places.
The happiness of commercial tenants is especially important for the coming year. If a commercial tenant terminates a lease, it may be hard for a commercial landlord to find a replacement tenant because commercial landlords are still willing to slash rent to attract tenants. On the flipside, cheaper commercial space is positive for businesses that rent office space. The expected use of office space by companies is dependent on the type of workforce implemented in the new year.
Telecommuting has grown in popularity and businesses that use contract workers and individual consultants will likely continue to leverage telecommuting options to workers who can effectively be productive from home. However, businesses that hire recent graduates may shy away from telecommuting because recent grads expect to collaborate in person and implement team skills learned from studies.
If your business needs guidance or legal assistance, contact an experienced California business law attorney.