State of the City of Carpinteria

April 21, 2017 Mark Schniepp Director State of the City of Carpinteria jobs 1,000 Employment in Information / Carpinteria Valley 2006 -- 2016 800 600 400 200 0 2006 2008 2010 2012 2014 2016

ConstructiveDIVE.com / December 16, 201 General Economic Summary Carpinteria / April 2017 Employment: up slightly in 2016 Rising retail sales, hotel/motel room sales, and home sales this year Industrial space has become especially scarce; ditto existing homes for sale and rental vacancy Not much new development in the Valley

Carpinteria Greater Carpinteria Valley Population (2016) City Population (2016) Employed Residents (Feb 2017) Unemployment Rate (Feb 2017) Carpinteria SB County California Median Household Income (2016) Carpinteria SB County California Median Home Price (January April 2017) 20,472 13,928 7,300 4.8 % 5.1 % 5.0 % $ 69,979 $ 66,518 $ 63,566 $ 960,000 California $ 517,020 jobs 500 Jobs Created / Carpinteria Valley 2006 -- 2016 400 300 200 100 0-100 -200-300 1,169 jobs (5 years) 2006 2008 2010 2012 2014 2016

jobs 9,200 Total Employment / Carpinteria Valley 2002-2016 9,000 8,800 8,600 8,400 8,200 8,000 7,800 7,600 2004 2006 2008 2010 2012 2014 2016 jobs Farm Employment / Carpinteria Valley 2002-2016 1,700 1,600 1,500 1,400 1,300 1,200 1,100 2002 2004 2006 2008 2010 2012 2014 2016

Employment Ebb & Flow Farming and Flowers Professional and Information Services Manufacturing Recreation, Leisure & Hospitality Public Sector Retail Trade Wholesale Trade Healthcare Construction Finance & Real Estate contracting rising no change contracting contracting contracting rising rising no change slight decline Total Jobs 9,111 Company Largest Employers Carpinteria Valley / 2017 number of workers Procore 545 Nusil 356 Carpinteria Unified School District 323 Linked in (formerly Lynda.com) 284 Agilent (formerly Dako Corp) 250 AGIA 223 Astro Aerospace 147 Gigavac 133 Bega U.S. 120 Albertsons 118 Plan Member Services 100

The miracle ½ mile radius jobs 1,200 Leisure & Hospitality Employment Carpinteria Valley 2006-2016 1,100 1,000 900 800 700 2006 2008 2010 2012 2014 2016

percent 75 Hotel Occupancy Rate / Carpinteria Valley 2008-2016 73 71 69 67 65 2008 2009 2010 2011 2012 2013 2014 2015 2016 Lodging Industry 5 hotels, nearly 600 rooms 73.8 percent average occupancy in 2016 $ 20.4 million in total room sales 6 percent increase over 2015 sales Average room rate was $ 105 in 2016 (5.2%) Short term vacation rentals 158 properties for the June 23-26 weekend according to HomeAway.com (or VRBO) 71 properties according to AirBnB

millions of dollars 21 Hotel-Motel Room Sales / City of Carpinteria 2006-2016 20 19 18 17 16 15 14 13 12 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 dollars per room Average Daily Room Rate / Carpinteria 2007-2016 105 100 95 90 $ 69 at Motel 6 $ 129 at Best Western Plus $ 170 at the Holiday Inn Express 85 80 75 70 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

180 Taxable Sales / City of Carpinteria millions of dollars 1996-2016 160 140 120 100 80 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 Commercial Real Estate Size of the Market Office: 467,000 SF Industrial: 1.3 million SF Virtually no available industrial or office space -- 27,000 SF total Only 10 available office spaces, all 7,000 SF or less Only 1 available industrial space, 2,000 SF South Coast Industrial vacancy at historic lows No new development

percent vacant 25 Office Vacancy by City 2017 Q1 20 19.8 15 10 5 5.4 5.5 8.7 0 Carpinteria Santa Barbara Goleta Ventura percent vacant 27 24 Office Vacancy Rate / Carpinteria CKE departs 2012 Q1-2017 Q1 21 18 15 12 9 Procore & office conversion 6 3 0 2012 Q1 2013 Q1 2014 Q1 2015 Q1 2016 Q1 2017 Q1

gross rent per square foot per month ($) Office Space Lease Rates 2011 Q4-2016 Q4 3.25 3.00 2.75 2.50 2.25 2.00 1.75 1.50 Santa Barbara Goleta Carpinteria 1.25 2011 Q4 2012 Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 percent 5 4 Industrial Vacancy Rate / Carpinteria 3.8 3.8 2014 Q3 -- 2017 Q1 4.7 3 2 2.7 2.7 2.8 2.5 1.5 2.1 1 0 0.2 2014 Q3 2015 Q1 2015 Q3 2016 Q1 2016 Q3 2017 Q1

percent vacant 6 5 4 Industrial Vacancy by City 2017 Q1 3.8 5.5 3 2 1 0 0.2 0.7 Carpinteria Santa Barbara Goleta Ventura Local Housing Market Housing availability remains scarce -- rental housing -- for sale housing Sales this year ahead of last year Selling values higher -- detached single family homes -- and condominiums

percent. vacant. 6 Apartment Vacancy / Carpinteria October 2006 - October 2016 5 4 3 Fall 2016: 2.3% 2,100 units 2 1 0 Oct-06 Apr-08 Oct-09 Apr-11 Oct-12 Apr-14 Oct-15 Source: Dyer-Sheehan Group, Inc. dollars per month 1,750 Average Apartment Rent / Carpinteria October 2006 - October 2016 1,675 1,600 1,525 1,450 1,375 1,300 Oct-06 Oct-08 Oct-10 Oct-12 Oct-14 Oct-16 Source: Dyer-Sheehan Group, Inc.

dollars per month 2,050 Average Apartment Rent by Market October 2016 2,033 2,000 1,950 1,900 1,850 1,800 1,789 1,823 1,872 1,750 1,700 1,650 1,713 1,665 1,600 Carpinteria Isla Vista Santa Barbara Total South Coast Source: Dyer-Sheehan Group, Inc.. Goleta Ventura Housing numbers / Purchase Market Carpinteria / April 2017 Inventory - only 36 single family detached homes for sale - only 24 condominiums for sale - 7,292 total single family homes and apt units Sales, year to date -- 28 detached homes sold -- 18 condos Selling values -- $959,500 for detached -- $555,000 for condominium

New Home Listings / Carpinteria Valley homes 2006-2016 180 170 160 150 140 130 120 110 100 06 07 08 09 10 11 12 13 14 15 16 110 Single-Family Home Sales / Carpinteria Valley sales 2006-2016 100 90 80 70 60 50 06 07 08 09 10 11 12 13 14 15 16

thousands of dollars 1,300 1,200 1,100 Median Single-Family Home Selling Price Carpinteria Valley 2005-2017 $960,000 $910,000 1,000 900 800 700 600 05 06 07 08 09 10 11 12 13 14 15 16 17 1,300 Median Single Family Home Selling Price South Coast thousands $1,210,000 of dollars 2005-2017 1,200 1,100 1,000 900 800 700 2005 2007 2009 2011 2013 2015 2017

San Diego Orange Median Single Family Home Selling Price California Counties March 2017 County Price Los Angeles Ventura San Francisco Santa Clara California $ 559,950 $ 745,000 $ 482,000 $ 636,180 $ 1,276,000 $ 1,100,000 $ 517,020 % change 7.0 5.7 5.7 4.2-9.5 16.7 6.8 % change from peak -10.0-3.9-18.6-10.5 +31.3 +27.2-13.0 Principal Residential Projects Carpinteria / April 2017 Remaining Units Development Location in Project Green Heron Spring 1300 Cravens Lane 30 20 3-bedroom townhomes 10 1-bedroom flats Misc. projects 29

units permitted 90 80 70 60 50 40 30 20 10 New Residential Units / City of Carpinteria Lagunitas & Dahlia Court II 2002-2016 Casa de Las Flores 0 2002 2004 2006 2008 2010 2012 2014 2016 Principal Non-Residential Projects Carpinteria / April 2017 Total Development Location square feet Lagunitas 6380 Villa Real 85,000 office building Via Real Via Real & Cravens 55,465 102 room hotel M3 Carp. Ave. & Holly Ave 6,448 Office & retail + 2 apartments Carpinteria Valley Arts Center 865 Linden Ave 2,500

Summary / Carpinteria Most economic indicators are rising The local labor market is on net, creating more jobs, despite downsizing at Linked in, Forms & Surfaces, TE Connectivity, and Nusil However the labor markets are at full employment Technology is the engine of growth in Carpinteria The visitor serving sector is flourishing; STRs should provide a large boost to City TOT this year Existing homes and selling values are up this year There is virtually no new development Broader Forecast Summary 2017-18 Another year of expansion, with rising wages and salaries The job forecast has softened - approximately 1,500-2,500 jobs for SB County - Some technology, visitor-serving, healthcare Continued tight O & I, and rental markets More housing in South County, North County Stronger overall growth in California, U.S.

2017 State of the City