Highlighting success within the economic landscape of our community
Economic Development Update
July 4, 2020
New investments continue as COVID-uncertainty looms
The world hasn't completely stopped although the moving in and out of economic recovery has been frustrating for many as the goal posts related to COVID-19 continue to change.
With that said, investment continues in the City of Tehachapi. It is a testament to our community, our quality of life and the customers that support local business. As many may have seen, the remodel continues to Tacos El Superior, the Antelope Valley-based business that is opening their first physical location in Tehachapi. Charmed by all the aforementioned qualities, they chose to put down roots in Tehachapi and continue toward an opening this summer as they remodel what was once the Dunkin' Donuts building on Tucker Road.
Construction also continues at a brisk pace at the Towneplace Suites by Marriott in Capital Hills. This project will be our first extended-stay hotel in Tehachapi and will be a wonderful addition to the area, providing much-needed hotel rooms. It offers additional accommodations near both Highway 58 and Adventist Health Tehachapi Valley hospital, an important resource for families of patients and staff members alike.
There is movement on the projects slated for the out parcels near Walmart, which opened just shy of a year ago. There were several real estate transactions, lot creations and lot line adjustments necessary to move closer to construction but most of those hurdles have been cleared. Valley Strong Credit Union (formerly Kern Schools) has Planning Commission approval to build a branch on one of the lots along Tehachapi Blvd. They anticipate breaking ground very soon.
Panda Express also received an approval from the Planning Commission to build a restaurant with a drive-thru earlier this year. They too appear very close to receiving their permits after working through a variety of real estate transactions in order to create the space necessary to build at the northwest corner of the Walmart parking lot. COVID-19 may have slowed but it certainly hasn't stopped their desire to develop in Tehachapi, something they have been targeting as a corporation for nearly five years. There are a few other new businesses that are taking over available suites and starting something new, more details to come on those.
We understand the uncertainty surrounding these times and we are honored that these companies, both large and small, continue to look at our community as a place in which they feel comfortable investing and we are honored to share a future with them. Nothing could have prepared us for the impact of COVID-19, and some of our treasured small businesses had to make tough decisions, however, it is a testament to this city and this community as a whole that even amidst uncertainty, Tehachapi is a viable place to invest and continue to do business.
Real estate sales indicate increase in value even amidst health crisis
The Tehachapi real estate market continues to produce sales despite the economic setbacks brought on by COVID-19. As with the case in many emergencies that increasingly affect urban communities, history has shown a shift toward a more rural lifestyle for many home buyers.
Both the City of Tehachapi and the Greater Tehachapi area have seen an increase in prices since the Governor's stay-at-home order was put in place in March of this year. With real estate being designated as an essential service, home buyers continued to push forward with purchases despite uncertainty around them.
Recent sales numbers in the area show a decrease in the overall volume of sales from the same period a year ago, but, due to demand and a limited inventory, sales prices remain strong and have posted modest gains in Tehachapi.
The following single family residential home sales numbers were collected from March 19 (when Governor Newsom issued his stay-at-home executive order in response to COVID-19) to June 8. For comparison purposes sales data from the same time period was collected from 2019.
City of Tehachapi
March 19-June 8, 2020
Total Single Family Home Sales 11
Average Sales Price: $331,000
Median Sales Price: $300,000
March 19-June 8, 2019
Total Single Family Home Sales: 28
Average Sales Price: $272,000
Median Sales Price, $277,000
Analysis: While sales volume decreased by 17 sales, the final average sales price of single family homes saw a 22 percent change while the median price also increased 8 percent from the same time period a year ago.
Greater Tehachapi Area
March 19-June 8, 2020
Total Single Family Home Sales: 98
Average Sales Price: $340,000
Median Sales Price: $322,000
March 19-June 8, 2019
Total Single Family Home Sales: 139
Average Sales Price: $301,000
Median Sales Price: $287,000
Analysis: Sales volume also decreased during this time period, however like the City numbers, the surrounding communities also experienced a sales value increase. Average home sales price increased 13 percent to $340,000 while the median sales price jumped 12 percent compared to a year ago.
Tehachapi continues to be a desirable community as seen by the demand and increase in sales value even amidst a health crisis. It is to be expected that potential unrest in urban areas and the reality of life post COVID-19, could drive more potential residents into places like Tehachapi, located near California's larger cities but removed from many of those larger-city issues and concerns.
Successful downtown businesses for sale
Tehachapi Flower Shop which has served Tehachapi since 1963 is for sale as the owners are retiring. This business includes Downtown Yogurt Junction and equipment; both are located currently at 117 E. F St. A great investment opportunity in a wonderful location. Call (661) 822-3117 for more information.
In The News: Establishment of the 'Tehachapi Mountains' Viticultural Area
After years of work by local winegrowers, the "Tehachapi Mountains" American Viticultural Area or AVA, is being considered by the Alcohol, Tobacco and Trade Bureau. This report linked below is a call for public comment which will establish the Tehachapi region as a recognized wine-producing area nationwide allowing "Tehachapi Mountains" to be printed on local wine labels. For more information, visit http://www.federalregister.gov/documents/2020/06/26/2020-13138/proposed-establishment-of-the-tehachapi-mountains-viticultural-area/.
Featured available space
Four units remain in the 4 Season Plaza, located at the edge of Downtown Tehachapi. Perfect for office, retail or a restaurant, this plaza shares space with Dance Craze and Midori Sushi and is adjacent to three hotels. Available units range from 1,600 to 2,800 square feet. Visit http://www.loopnet.com/Listing/414-W-Tehachapi-Blvd-Tehachapi-CA/7024229/ for more information and agent contact.
For more Economic Development News visit http://www.liveuptehachapi.com/303/Economic-Development-News.