Hidden amongst the towering Northern California economies of the Silicon Valley, San Francisco and the East Bay area is a trade area that spans from Stockton to Merced. What is missed is that 1,530,000 people call this area home and $46 Billion in goods and services (Gross Municipal Product) are produced and consumed here each year. In fact, according to the California Department of Finance, San Joaquin County is the second fastest growing county in California–with a population greater than 500,000 for the 2016/2017 measurement–with Stanislaus County coming in 4th place.
“What is attractive about these counties from an investment perspective is that the underlying real estate is good. The location is steadily growing in proximity and value. “
The location, adjacent to Silicon Valley and San Francisco (and their combined $435 Billion GMP) is not going away and as self-driving cars, the ACE train, High Speed Rail, and the growth of digital commuting occur, commutes become shorter and more accessible. This area is not a rocket ship but it is a lesser giant, slowly lumbering in the right direction—we think it is a good long-term bet.