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San Leandro. First. San Leandro is an attractive location for businesses that are relocating from other parts of the Bay Area but do not wish to leave the region. This includes businesses for which the Bay Area region is a kev market. and for which San Leandro's central location and convenient freewav access are important considerations in transporting products to end -users. while the relative affordability attracts price -sensitive tenants. San Leandro (and the Bay Area as a whole) have not been attractive locations for businesses that are relocating from outside the region: however, businesses that are expanding into the region and are also concerned about a convenient location and affordabilit` would also be firms which have tended to relocate to San attracted to San Leandro. Based on the size of Leandro and the types of spaces most predominant in San Leandro. the City should focus efforts on attracting small to mid -sized companies. Also current real estate market conditions position San Leandro well to capture demand from growing firms from the Berkeley/Emervville area who are dependent on transportation networks to move goods to other locations in the region. and are having difficult♦ locating appropriate], sized. affordable space in those constrained sub -markets. Noah's Bagels' production faciliry is a good example of this type of establishment in San Leandro. The two important factors of regional accessibility and affordability point to warehousing and trucking and manufacturing businesses as strong candidates for attraction. Affordable locations are important to these types of businesses because they typically require large amounts of storage space. and large amounts of surface parking for staging and loadin_ of trucks. San Leandro has been successful in attracting these types of businesses in the past because it has provided a good supple of space suitable for different types of users at affordable prices. While trucking and warehousing are important activities in San Leandro at this time. a business attraction strategy for the future should also seek opportunities to attract a range of other business types in order to encourage diversification. It is possible to conduct some broad screening of potentially promising sectors based on past regional and local employment growth patterns. One way to screen in this manner involves identifying sectors that grey at a rate that exceeded the economic growth rate for the region overall (positive proportional shift) and also showed a positive differential shift. indicating that locally. the industry performed even better than it did in the region. There are a number of sectors meeting these criteria. as sho«•n in Appendix A. however. a striking aspect of the group is that all of the ten sectors that met the criteria fall into the Retail: Finance. Insurance. and Real Estate (FIRE): or Services major industry groups with the exception of Trucking and \ arehousing. which is classified in the Transportation. Communications. and Utilities industn group. While these are the industries in which San Leandro appears to be outperforming the region in capturing a share of increasing] , important employment sectors. there may be limits to the abilih- to sustain growth in these categories. This is because much of the employment in these industries is considered "local" employment (i.e.. employment that services). is generated by local demand for goods and 30 23u