Grill of the city
Bob Betz
Executive Vice President
McCarthy Building Cos.
The outlook for San Diego’s AEC industry has remained upbeat over the past few years, and that outlook looks set to continue in the short term, Betz says.
“The San Diego region is finding stability in publicly funded or mandate-driven projects. Three key sectors: health care, student housing and community colleges) are doing exceptionally well thanks to secure funding,” he says.
California Senate Bill (SB) 1953, which established seismic safety requirements for hospitals, has been the main driver of increased investment in health care projects. Medical buildings that provide acute care must meet these requirements by 2030. This mandate is driving an industry-wide push to retrofit or replace aging facilities.
Private sector projects, by comparison, have continued to struggle. “Recovery of the private development sector could take several years and depend heavily on the cost of capital,” notes Betz. “High interest rates and changes in federal funding are a couple of the main barriers to a rebound in the near future.”
