San Diego Housing Bubble News and Analysis

I know of another large company in RB that has been moving large segments of it's operations to Virginia as well.

For the defense industry, the DC area is the Mother-ship.

Not surprised. I used to commute to DC and their staff took up 50% of the plane bc of their contracts in DC. The ride home on thursday's with them was a party in the sky. San Diego isnt the best hub for travel expenditures for staff.

I expect we'll be seeing even more companies exit CA. The state is so far in deficit and the bubble FIRE economy money stream is gone, so where can the state turn for funds? Corporations probably know that they are at the top of the list. 1000 employees at that company support many more indirect jobs throughout San Diego.

Unemployment keeps going up, consumers keep retrenching and yet people in SoCal still think a small 40 year old house in Poway is worth $400k. The disconnect is huge.

If true, this will be a very big blow to San Diego's economy and real estate market, since these people are high-paid and a lot of auxiliary businesses connected to SAIC will leave too.
Much of the blame must fall on the liberal, anti-business atmosphere of CA. Our high state taxes combined with silly regulations will continue to drive out businesses and the middle and upper classes to friendlier states.
SD Realtor: would the hardest hit neighborhoods be around RB, RP, Scripps, etc.?

SAIC has been trimming for a while. The mother of one of my sons friends was cut a while back. She's seen a lot of her friends cut over the past few months.

Yes, these were high paying jobs and folks who didn't see it coming.

It will hit San Diego hard.

Moving HQ doesn't mean all jobs move, but I would think there would be an impact for sure. Coupled with that othe, thread's news, the presence in SD is definitely diminished.

It won't impact the real estate markets as the FED will just withhold more inventory.

My mother was involved in coordinating the move with SAIC, so this is definitely happening with major portions already completed. She was laid off once her department made the transfer to Virginia. Not sure she would have gone anyway.

On a brighter note Obama seems to be masterful at creating jobs, so I am sure San Diego won't feel any impact ;).

As was said earlier, moving the corporate HQ to VA would just mean the corporate jobs...persons supporting existing contracts would likely remain here since they couldn't afford to lose the expertise that is staffing the projects.

I would be surprised to see them, or any defense contractor, close up shop here. Why? Because their customers loooove trips to sunny SD. When it is snowing/freezing/humid/hot as stink in VA, those customers like a government paid trip to SD to check in on their contractors. They even bring their families, though their family's airfare is prolly on their own dime.

Apparently you've spent to much time under that SD Sun...

Are you saying that SAIC is pulling out of San Diego entirely, that there will be no SAIC employees left next year?

Care to make a wager?

Completely moving SAIC from San Diego is not possible. They do lot of work with Navy and other military establishments here. Their lots of IT departments are moving to Orlando, Fl.

No, I'm saying companies don't make plans to move or not move corp. HQ's based on where gov't bureaucrats like to spend time because of the weather.

There may be bits and pieces of SAIC around San Diego, but probably only as a shadow of it's former self.

Besides IT to Orlando, I do believe many biz functions were moved to TN. I suppose if it's not IT or something to handle in TN it will go to DC.

I think there will still be quite a few left here for supporting their local customers but basically a skeleton crew compared to the past.

Hooray for "vacation welfare" for government contractors.

Why aren't Republicans in an uproar over those "giveaways" to the military industrial complex?

Heard a rumour about Qualcom that is being spread a lot intense their IT and related Outsourcing these days to countries like India. Well they setup already some outsource centers but now the fact is they slowly spread these activities bit intent and showing a positive cause that they can $ave a buck for future downturn(expeting ...)

Rumor has it Deja Vu is starting to outsource as well! I hear they are sending out employees for 2 week stints in India and Saudi Arabia. This could really put a damper on the market. TG, this is devastating news!

Highest marginal income tax rate in Virginia is 5.75%, thats about half of California's tax rate. Sales tax is 5% rather than 8.5% here. Property taxes are about the same in percentage terms, but you get A LOT more house for the money. The public schools in the DC suburbs of northern Virginia are very good. Crime is low. Its a much better deal for the people who work at SAIC. Same reason UPS moved from CT to Atlanta Georgia 20 years ago. Its a smart decision for SAIC, maybe will be a slap in the face for California to realize that current policies need to change and change quickly.

Did I read somewhere that CA is considering raising taxes on business to help with the shortfall? Not to derail the SAIC thread but whatever solution CA GOV has to come up with I can't imagine it being good for business.

People who work at SAIC in SD should be able to live in low-crime areas with good schools, just an FYI.

Businesses and heavily-taxed families are leaving CA not only due to current economic and political realities, but for what they see in our future. Demographic, political, and economic trends simply look worse here than the states they are moving to.
Given the cost of living here and the inefficiencies of our union-dominated government, employers and the middle-class run the numbers and make their long-term plans to leave. They witness Sacramento's liberal tilt and see little reason for improvement in areas of taxes, silly regulations, utility costs (which are about to really leap upward), schools and universities, and rationally plot their departure. For many, their depressed home values are only postponing their move out.

If you think that is what I said, then you misread my post. I agree that SAIC HQ will probably move to VA and that makes sense - I'd probably do it too if I were them.

My point was that many of the programs/contracts that are now run out of SD will remain in SD for the foreseeable future. Just because the HQ moves to VA does not mean all programs/contracts move with it.

(and the SD sun is just one reason for those projects remaining here,there are others...I even mentioned one: the program expertise is here)