San Diego led the nation in hourly earnings growth for August, according to the most recent monthly report from small business payroll provider Paychex.
The hourly earnings growth rate in San Diego was 5.13%, the highest among all metro areas.
Other metros that had high hourly earnings growth in August included Riverside (5.06%), El Paso (4.99%) and Miami (4.83%).
The report found that growth in weekly hours worked slowed in August across the country.
However, San Diego was one of the few metros where weekly hours worked growth was positive, up 0.05% from July.
Paychex’s monthly small business employment watch tracks job growth and wage trends across the U.S.
The report is based on payroll data from approximately 350,000 Paychex clients.
* * *
Home prices in the United States continued to rise in June, with the S&P CoreLogic Case-Shiller Index posting a 0.9% month-over-month increase. This marks the fifth consecutive month of home price gains.
The increase in San Diego exceeded the national average — and all other West Coast markets — at 1.1% in June. This brings San Diego’s home prices to within 0.02% of their all-time high, which was set in June 2022.
Other cities that saw significant home price increases in June include Chicago (+1.4%), Cleveland (+1.5%) and New York (+1.1%).
The only city that saw a decline in home prices in June was San Francisco, where prices fell 0.1%.
Analysts say that the continued rise in home prices is being driven by strong demand and limited post-pandemic supply.
However, some warn that the housing market could be headed for a slowdown. Mortgage rates are rising, which could make it more difficult for buyers to afford homes.
In addition, the Federal Reserve is expected to raise interest rates to combat inflation, moves which could slow the housing market.
* * *
San Diego’s Realty Income Corp. and Blackstone Real Estate Income Trust recently announced a $950 million joint venture deal focused on the real estate assets of the sprawling Bellagio casino on the Las Vegas strip.
Realty Income invested $300 million for a 21.9% indirect property stake, while BREIT will invest 73.1% with MGM Resorts International keeping a 5.0% stake. Realty Income will commit $650 million for a preferred equity interest.
The Bellagio boasts 4,000 guestrooms, 157,000 square feet of gaming space, and 200,000 square feet for events, all subject to a long-term triple-net lease with MGM.
Sumit Roy, Realty Income’s top executive, expressed enthusiasm for the transaction, noting that it marked the trust’s second foray into gaming real estate.
“Realty Income seeks to invest in high-quality real estate at scale in partnership with operators who are leaders in their respective industries. This transaction to acquire an interest in the Bellagio, an iconic property, represents our second investment in the gaming industry and exemplifies the advantages of our size, scale, and access to capital,” he said in a news release.
* * *
San Diego’s Guild Mortgage, a mortgage lending company, has acquired Illinois-based First Centennial Mortgage, a private residential mortgage lender active in the Midwest.
Terms were not disclosed.
According to a news release from Guild, the acquisition aligns with the company’s growth strategy and shared customer-focused approach.
Guild CEO Terry Schmidt said First Centennial’s local teams can leverage Guild’s platform to speed growth.
Guild says it has a history of offering diverse loan products and supporting homeownership initiatives. It’s known for its community impact, regulatory compliance, and customer-oriented culture.
* * *
The San Diego Fishermen’s Marketing Association, which has been dormant for a decade, is making a comeback, thanks to a grant from the Agriculture Department’s Agricultural Marketing Service.
The San Diego Fishermen’s Working Group and the San Diego Regional Policy & Innovation Center are spearheading this initiative, to enhance the local fishing community, according to a news release.
The focus is on fortifying and shortening the supply chain to bolster local fish purchases, boost local fishermen’s profits, and elevate the local fishing industry’s profile.
Pete Halmay, founder of the Tuna Harbor Dockside Market, said the grant will unite the fishing community around a shared strategy, anchoring its place in San Diego’s food economy.
“This grant is a win for many in San Diego: The fishing community will benefit from increased sales; restaurants and retailers will have better access to sustainable fish at a fair price; and the public will get to enjoy healthy, quality, affordable seafood,” said Susan Guinn, the top executive at the policy and innovation center.
She said the project will push for better visibility for local vendors, better connections between food and restaurant sectors, and revitalization of the local fishing industry.
* * *
Come Sept. 7, the San Diego County Regional Airport Authority is staging a special event to pair local businesses with prime contractors, concessionaires, public agencies, financial support services, and others associated with the airport.
The “Meet the Primes” event will be held in the Balboa Park Club Ballroom.
According to the announcement, attendees will gain insights into numerous opportunities, including construction, concessions, and professional services.
They can also explore regional teaming, contracting, and partnership possibilities by engaging with prime contractors and Airport Authority departments through exhibitor booths.
The event will facilitate networking, offering a chance to forge business relationships and gather valuable information about doing business at SAN.
Kimberly Becker, the airport’s top executive, highlighted the event’s significance for small, local, veteran, and underrepresented businesses aiming to expand in an airport environment.
The 8-year-old program has become the Airport Authority’s largest annual business networking event, attracting over 300 participants each year, according to a news release.
This year’s edition marks the first in-person presentation since the pandemic and underscores the authority’s commitment to fostering the participation of various businesses in contracts with the Airport Authority and its partners, according to a news release.
Interested business owners can register for the event here. To dive deeper into the Airport Authority’s small business development efforts, click here.
Tom York is a Carlsbad-based independent journalist who specializes in writing about business and the economy. If you have news tips you’d like to share, send them to tom.york@gmail.com.
