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KERN BUSINESS JOURNAL
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Kern County real estate market continues to out-perform state, nation By Rebecca Hardin
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conomic activity in Bakersfield and Kern County is becoming more robust and resilient, according to executives at Bolthouse Properties and Valley Republic Bank. New activity in commercial and residential real estate strongly supports their premise, with indicators for steady growth and prosperity seen across a spectrum of industries. Although Bakersfield and Kern County felt the pain of the Great Recession, the local market continues to out-perform most of the state. “Even at our lowest point, we did better than many other markets nationally, and certainly better than most in California,” said Bolthouse Properties President Tony Leggio. “I am not minimizing the distress a down economy delivers, but our relatively good showing through the downturn has meant fewer losses in terms of companies, services and personnel. That has kept us well positioned for better times.” These better times are now, with energy, agriculture and distribution being the principal foundations for economic growth. “Commodity prices are strong, world demand for food is only going to increase, and we’re part of the breadbasket of the world,” noted Leggio. “It’s the same with demand for oil and gas. We’re also seeing more vertical integration, such as agricultural companies adding processing and packaging to growing and harvesting. That leads to new efficiencies and higher profits. “Related businesses, like distribution and warehousing, strengthen the base,” he added. “Whether you’re talking contractors, engineers, suppliers, retailers or their service companies, the ripple effect cannot be overstated.” As an example, Leggio points to Chevron’s recent purchased of the Kern Schools Federal Credit Union’s current administration building and branch office on Ming Avenue to create a consolidated campus for the oil company’s expanding operations. This acquisition gave Kern Schools the opportunity to pursue its own long-term expansion, which includes a new headquarters building in Seven Oaks Business Park. Employment growth is also impressive, with Kern County’s job growth increasing by 15.9 percent from 2002–2012, far outstripping California’s 1.6 percent rate. Against other major California markets, Kern County is clearly the leader, with the Inland Empire a distant second at an 8.5 percent rate.
West Beltway
Truxtun Ave
Grand Island Village
Future Residential
Next Phase Residential 2015
Photo courtesy of Bolthouse Properties
Retail, office and residential uses are featured in Bolthouse Properties’ southwest Bakersfield development.
Spotlight on the Southwest A concentrated area geographically, southwest Bakersfield is well positioned with entitled property to facilitate future growth. This is one of Bakersfield’s most prosperous places, an emerging quadrant for energy, medical, financial and retail services. Into this hub, Seven Oaks Business Park has welcomed five corporate and non-profit entities just since January. Serving the Business Park and residents, Grand Island Village is thriving, with many local businesses expanding into the Seven Oaks community, including Dewar’s Ice Cream, Valley Republic Bank, Wiki’s Wine Dive & Grill and Sullivan’s Petroleum. Springing to new life are the next phases of Seven Oaks residential. Fuller Apartment Homes is building a luxury, gated apartment community, and Woodbridge Pacific Group is coming in as the newest developer/homebuilder of the Seven Oaks community. A private, upscale homebuilding company, WPG has several successful projects in Southern California. Expect to tour new model homes in the spring 2015, WPG co-founders Todd Cunningham and Carl Neuss said. Also key is a healthy financial environment, and local lending is clearly healthy. Valley Republic Bank’s President Bruce Jay reports a 34 percent increase in loan applications over this time last year. While most requests are by energy and agricultural companies, loan activity also represents a wide array of retail and service businesses. Changes in the banking industry since 2008-2009 boosted local lending, according to Jay. “Regional and national lenders pulled more authority to the corporate level, away from local offices, and this slowed their ability to process and approve proposed transactions,” he said. “Local lenders can frequently process applications in a more timely fashion, and that generates new opportunities.” As for the future, the certainty
Photo courtesy of Bolthouse Properties
Valley Republic Bank’s southwest Bakersfield branch is located in the Bolthouse Properties’ project.
Photo courtesy of Bolthouse Properties
Houchin Community Blood Bank has constructed its new headquarters, labs and drawing facilities in Bolthouse’s Seven Oaks Business Park.
is that predicting it is a risky business. “With as many moving parts as you see in the state, national and global arenas, it’s hard to be conclusive, but locally, positive momentum is clear,” Leggio said. “As a part-
ner in this community, Bolthouse Properties is optimistic about Bakersfield, Kern County and the future of the local economy.” Rebecca Hardin is the owner of Open Line Public Relations.