San Diego Residential Property Outlook
San Diego residential property and commercial property is uncertain as the Qualcomm layoffs approach.
Will the the mid-to high-end residential San Diego property be affected by the upcoming Qualcomm layoffs?
In just 17 days 1314 full-time high-paying San Diego jobs will be history. Yes, November 20, 2015 is the final day for the skilled high-paying jobs at Qualcomm.
San Diego Residential Property Outlook
Sure, hopefully many of these jobs will stay in San Diego, but because of the huge number of layoffs it may be hard for high-tech market to absorb all these skilled workers. Plus, it’s debatable even if the majority of these laid-off workers secure a similar local San Diego employment, that their new salaries will be close to what they were earning at Qualcomm.
It seems that this huge layoff of high-end workers will have a significant, and perhaps lasting effect on the local San Diego regional economy.
Since it’s likely that a high percentage of these Qualcomm workers were owning homes in San Diego, it’s likely that is going to be a larger supply of upper and residential properties hitting the market at the seasonally slowest real estate marketing period.
As far as this San Diego commercial real estate market goes, there’s quite a bit of speculation that Qualcomm will be shedding a good amount of commercial space. With no specific numbers on the buildings and/or square footage of commercial space that might be eliminated, it’s unknown at this time whether or not this will have a significant impact on San Diego commercial leasing and commercial sales.
From Wikipedia, the free encyclopedia:
In July 2015, the company cut 4,700 jobs or about 15 percent of its 31,300 current workforce due to decline of sales order when consumers shift to cheaper smartphones. It hoped to reduce costs by about $1.4 billion, including cutting executive payment.
In 1997, Qualcomm paid $18 million for the naming rights to the Jack Murphy Stadium in San Diego, renaming it to Qualcomm Stadium. The naming rights will belong to Qualcomm until 2017.
Qualcomm is doing what is required to stay competitive in the marketplace. A company and its employees cannot rest on their laurels. It must continuously innovate, adapt to changing business and customer dynamics and respond to competitive pressures. All companies do this — if they don’t, they die.
The role of the private corporation is to make money. They are not social welfare organizations and not the public sector. Their obligation is first to owners, the shareholders. If they don’t make money, there will be no jobs at all when they go out of business. The shareholders may include your grandmother’s (and your) pension funds.
It’s increasing clear that fewer and fewer people actually understand how our economic system works, and the roles of the various players in it.
Mollenkopf 2014 compensation: $60 million;
Jacobs’ 2012 compensation: $36 million;
Qualcomm’s off-shore cash: $21 billion.
Wealthy leaders of the high tech industry have manufactured the false “STEM crisis” to lower wages for engineering and science labor. The results are clearly that engineering wages are kept lower and the majority of engineering hires at many major high-tech companies are H1-B and/or foreign born students.
Qualcomm is an ultra leftist company. I guess it fits that the company is moving everything to China.