Mark Schniepp Director

April 21, 2017

State of the City of

Carpinteria

0

200

400

600

800

1,000

2006 2008 2010 2012 2014 2016

Employment in Information / Carpinteria Valley 2006 -- 2016 jobs

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

-300

-200

-100

0

100

200

300

400

500

2006 2008 2010 2012 2014 2016

Jobs Created / Carpinteria Valley 2006 -- 2016

jobs

1,169 jobs (5 years)

7,600

7,800

8,000

8,200

8,400

8,600

8,800

9,000

9,200

2004 2006 2008 2010 2012 2014 2016

Total Employment / Carpinteria Valley 2002 - 2016

jobs

1,100

1,200

1,300

1,400

1,500

1,600

1,700

2002 2004 2006 2008 2010 2012 2014 2016

Farm Employment / Carpinteria Valley 2002 - 2016 jobs

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

Largest Employers Carpinteria Valley / 2017

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

number Company of workers

The miracle ½ mile radius

700

800

900

1,000

1,100

1,200

2006 2008 2010 2012 2014 2016

Leisure & Hospitality Employment Carpinteria Valley

2006 - 2016 jobs

65

67

69

71

73

75

2008 2009 2010 2011 2012 2013 2014 2015 2016

Hotel Occupancy Rate / Carpinteria Valley 2008 - 2016 percent

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

12

13

14

15

16

17

18

19

20

21

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Hotel-Motel Room Sales / City of Carpinteria 2006 - 2016

millions of dollars

70

75

80

85

90

95

100

105

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Average Daily Room Rate / Carpinteria 2007 - 2016

dollars per room

$ 69 at Motel 6 $ 129 at Best Western Plus $ 170 at the Holiday Inn Express

80

100

120

140

160

180

1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016

Taxable Sales / City of Carpinteria millions of dollars 1996 - 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

5.4 5.5 8.7

19.8

0

5

10

15

20

25

Carpinteria Santa Barbara Goleta Ventura

Office Vacancy by City 2017 Q1

percent vacant

0

3

6

9

12

15

18

21

24

27

2012 Q1 2013 Q1 2014 Q1 2015 Q1 2016 Q1 2017 Q1

Office Vacancy Rate / Carpinteria percent vacant 2012 Q1 - 2017 Q1

CKE departs

Procore & office conversion

1.25

1.50

1.75

2.00

2.25

2.50

2.75

3.00

3.25

2011 Q4 2012 Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4

Office Space Lease Rates gross rent per square foot per month ($) 2011 Q4 - 2016 Q4

Santa Barbara

Goleta

Carpinteria

2.7 2.7

3.8 3.8

2.8 2.5

1.5

4.7

2.1

0.2 0

1

2

3

4

5

2014 Q3 2015 Q1 2015 Q3 2016 Q1 2016 Q3 2017 Q1

Industrial Vacancy Rate / Carpinteria percent 2014 Q3 -- 2017 Q1

0.2 0.7

3.8

5.5

0

1

2

3

4

5

6

Carpinteria Santa Barbara Goleta Ventura

Industrial Vacancy by City 2017 Q1

percent vacant

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

0

1

2

3

4

5

6

Oct-06 Apr-08 Oct-09 Apr-11 Oct-12 Apr-14 Oct-15

Apartment Vacancy / Carpinteria October 2006 - October 2016

percent . vacant .

Source: Dyer-Sheehan Group, Inc.

Fall 2016: 2.3% 2,100 units

1,300

1,375

1,450

1,525

1,600

1,675

1,750

Oct-06 Oct-08 Oct-10 Oct-12 Oct-14 Oct-16

Average Apartment Rent / Carpinteria October 2006 - October 2016

dollars per month

Source: Dyer-Sheehan Group, Inc.

1,713

1,789 1,823

1,872

2,033

1,665

1,600

1,650

1,700

1,750

1,800

1,850

1,900

1,950

2,000

2,050

Carpinteria Isla Vista Santa Barbara Total South Coast

Goleta Ventura

Average Apartment Rent by Market October 2016

dollars per month

Source: Dyer-Sheehan Group, Inc..

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

100

110

120

130

140

150

160

170

180

06 07 08 09 10 11 12 13 14 15 16

New Home Listings / Carpinteria Valley homes 2006 - 2016

50

60

70

80

90

100

110

06 07 08 09 10 11 12 13 14 15 16

Single-Family Home Sales / Carpinteria Valley sales 2006 - 2016

600

700

800

900

1,000

1,100

1,200

1,300

05 06 07 08 09 10 11 12 13 14 15 16 17

Median Single-Family Home Selling Price Carpinteria Valley thousands

of dollars 2005 - 2017

$910,000 $960,000

700

800

900

1,000

1,100

1,200

1,300

2005 2007 2009 2011 2013 2015 2017

Median Single Family Home Selling Price South Coast

2005 - 2017 thousands of dollars $1,210,000

Median Single Family Home Selling Price California Counties March 2017

San Diego Orange Los Angeles Ventura San Francisco Santa Clara California

County Price $ 559,950 $ 745,000 $ 482,000 $ 636,180 $ 1,276,000 $ 1,100,000 $ 517,020

% change from peak

-10.0 - 3.9 -18.6 -10.5 +31.3 +27.2 -13.0

7.0 5.7 5.7 4.2

-9.5 16.7

6.8

% change

Principal Residential Projects Carpinteria / April 2017

Green Heron Spring 1300 Cravens Lane 30 20 3-bedroom townhomes 10 1-bedroom flats Misc. projects 29

Remaining Units Development Location in Project

0

10

20

30

40

50

60

70

80

90

2002 2004 2006 2008 2010 2012 2014 2016

New Residential Units / City of Carpinteria 2002 - 2016

units permitted

Lagunitas & Dahlia Court II

Casa de Las Flores

Principal Non-Residential Projects Carpinteria / April 2017

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

Total Development Location square feet

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