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Home My WebLink About3.4 Commercial Space & Current Marketor 19 82 /ii � 111 DATE: TO: FROM: SUBJECT STAFF REPORT CITY COUNCIL March 15, 2016 Honorable Mayor and City Councilmembers CITY CLERK File #1100 -40 Christopher L. Foss, City Manager " Update on Dublin's Promotion of Commercial Opportunity ices and Commercial Market Conditions Prepared by Lori Taylor, Economic Development Director/ Public Information Officer EXECUTIVE SUMMARY: The City Council will receive a brief overview of economic development activities related to development of commercial space as well as an update on current market conditions related to Dublin, the Tri- Valley market and the broader Bay Area. FINANCIAL IMPACT: None. RECOMMENDATION: Staff recommends that the City Council receive the presentation. ("j Reviewed By , Administrative Service Director DESCRIPTION: In 2012, the City Council adopted the Dublin Economic Development Strategy (Attachment 1). To summarize, the Strategy is largely focused around the following top priorities: • Enhancing quality of place for businesses and residents • Small business support and growth • Development of the Eastern Dublin Transit Center • Development in Downtown Dublin The plan identified four key strategy areas that encompass a wide variety of economic development activities, and are focused on ensuring that Dublin is well - positioned to retain and capture economic growth and vitality. Two of the key strategy areas, Enhancing quality of place Page 1 of 3 ITEM NO. 3.4 and Development of Eastern Dublin Transit Center, are incorporated into this update due to their relevance regarding the development of new commercial office space in Dublin. Strategy: Continue Efforts to Enhance the Competitiveness of the City and Maintain a Strong and Diverse Economic Base Since adoption, the City has: 1) undertaken initiatives to codify existing economic development practices; 2) created new incentives; 3) implemented a comprehensive marketing and branding plan for the City; 4) actively met with high - growth companies; and 5) actively participated in regional efforts. In addition to working over the long term to build relationships with regional brokers and trade associations, last fall Staff began running a comprehensive marketing plan promoting Dublin's opportunities for commercial development (based on the City's marketing and branding plan). Dublin opportunities have been, and will continue to be, promoted in the Urban Land Institute (ULI) magazine, Western Real Estate Magazine, San Francisco Business Times, and California Centers Magazine. In addition to print ads, work is underway to create digital content including a new two - minute narrated video highlighting Dublin as a place for a range of businesses. The video will make its debut at the State of the City luncheon in April, and will be promoted on the City website and social media, and shared with visiting delegations and at special events. Furthermore, in order to promote Dublin as a location of choice for technology firms, Staff nominated several Dublin firms for the East Bay Innovation Awards held in Oakland last month. This annual event highlights the top firms in both Alameda and Contra Costa Counties and receives significant media coverage. Callidus Cloud, a Dublin software firm, was selected as an award recipient and was highlighted in the San Francisco Business Times last month. Staff also continues to work closely with other groups, such as Innovation Tri- Valley, to increase awareness of Dublin technology firms and showcase Dublin's role as a center of technology. Strategy: Position Development Sites to Meet Current and Future Market Demand and Provide Necessary Marketing Support While marketing can help share Dublin's story and attributes with a wide audience, promoting our real estate opportunities is accomplished through other efforts, such as building and maintaining relationships with a specific audience to highlight available sites (like the SAP site). Sustaining strong relationships with brokers, site selectors and industry professionals is critical to ensure that businesses consider Dublin as a location of choice for successful firms. Participating in industry events and associations is another way in which Staff builds a network of key contacts and stays informed of development opportunities and trends. To further extend beyond local and regional brokers, Staff has included Dublin's key opportunity sites on a development opportunity site page, OppSites, which can be viewed by national and international developers and businesses. The site highlights Dublin properties and includes zoning and other information to make it simple for interested commercial developers to identify suitable sites. In addition to working with brokers and developers, Staff also focuses on cultivating strong relationships with Dublin building and property owners. Staff strongly encouraged the Alameda County Surplus Property Authority to select a broker to professionally market the site at the northwest corner of Dublin Boulevard and Arnold Road, which has resulted in the "Tri - Valley Concept Campus" campaign currently underway and is led by brokerage firm Jones Lang LaSalle. Page 2 of 3 While Dublin has outstanding development sites and strong characteristics to attract potential businesses (such as access to transit, educated workforce, affluent customers, and strong trade areas) there are several market conditions which impact Staff's ability to recruit new tenants and new development. Market conditions in the commercial real estate market are complex; the regional impacts of land costs, development costs, lease rates and access to talent are interrelated, and have a significant impact on the timing of development projects. To further implement the Economic Development Strategic Plan, Staff will continue to provide support and bring resources to local businesses, to promote and expand existing programs and partnerships, and to promote the local economy where opportunities arise. In addition to the planned marketing and new content which are being developed, Staff is planning to host an event this fall with a keynote speaker that will attract brokers and developers from a Bay Area - wide audience with the specific message of highlighting Dublin's opportunities. To ensure that the City Council has the opportunity to receive an update on the latest trends that impact our local Dublin and Tri- Valley marketplace, Staff has invited Edward Del Beccaro, Managing Director of East Bay / Silicon Valley for TransWestern Real Estate, to provide a brief overview of current market conditions for leasing and construction of new commercial office space in Dublin and the region, and how these trends could impact the City's efforts to attract and retain new commercial office tenants. NOTICING REQUIREMENTS /PUBLIC OUTREACH: None. ATTACHMENTS: 1. Dublin Economic Development Strategy 2. Biography for Edward Del Beccaro Page 3 of 3 Edward Del Beccaro Managing Director, East Bay / Silicon Valley Agency Leasing: Healthcare II "'III AII' SWIlfiiiS "III "'llfiiilll 11 R01 Managing Director of the Transwestern Walnut Creek East Bay and Silicon Valley offices, Ed manages a full service real estate operation with office, retail, industrial, medical, land investment, residential mixed -use land, multi - family, leasing and investment sales capabilities, construction, property management and project management. The Walnut Creek and San Jose offices now have 35 plus brokers, property management and staff. Alll I I l . i i i I I l . i i i I I I III' °1 I I ' u 1 1 1 IIL...II G III' °1" IF' S Ed's career spans 37 years in the real estate industry in the San Francisco Bay area. He originally started his career with Grubb & Ellis in 1977. Ed also worked in the development area with CYGNA Engineers and his own development company from 1983 -1992. In 1999, Ed opened the Colliers Parrish International office in Walnut Creek, where he was instrumental in the growth and development of the transaction services and property management divisions. Ed was also a principal in a firm that developed residential and multi - family properties in San Francisco and East Bay. Ed's background includes brokerage, property development (commercial /residential) and property management including, property entitlement and consulting services. Ed is a specialist in office leasing /sales, distressed properties, land sales, commercial /residential mixed -use downtown projects, medical leasing, securing project entitlements, real estate valuation, and has leased /sold over five million square feet of office, mixed -use residential and medical properties. Ed is a frequent speaker on real estate, business development topics, work force issues and downtown suburban /urban redevelopment trends. If III IIf IlfiiiSSll 11 Alll,,, AIF:]IF:11 I A '11F 10 11MS/ I11?llliii: CO G lllmI "'III"'l10Im • Vice Chair, Economic Alliance for Business (EDA); Executive Committee member since 1994; Co -chair of Legislative & Endorsement Committee • Board of Directors, East Bay Leadership Council /Contra Costa Council; Past President, 1989 -1991; Past Vice President, 1983 -1988; • California Jobs & Housing Coalition, Exec. Board Member; Oakland, 2010 - present • Member of International Council of Shopping Centers (ICSC); 1994 - present • I -Gate member 2012 - present and NAIOP member 2010 - present • California Technology Council Board Member 2014 - present • Member of Walnut Creek, Oakland & Concord Chamber of Commerce • Chamber Music San Francisco Board Member 2014 - present • California Shakespeare Theater, Vice President 2005; Board of Directors 2002 -2012 • Saint Mary's College School of Education, Corporate Advisory Board 2005 -2007 • Current BOD & Past President, Walnut Creek Library Foundation 2004 - present • Past Officer & Board Trustee of JFK University 2004 -2009 ANINNEW Ed earned his bachelor's degree in philosophy from Stanford University. He is a licensed California broker (LIC #00642167). ■ Update on Commercial Development Activities March 16, 2016 Commercial Development Opportunity Promotion International Recruitment OppSites Alameda County Sites Commercial Development Tri -Valley Concept Campus Site Questions? Introduction Edward Del Beccaro Managing Director, East Bay /Silicon Valley Transwestern