AAA to open 225-employee office in Solano

AAA to open 225-employee office in Solano
Consolidation to improve efficiency, cost-effectiveness and boost local job growth
by D. Ashley Furness
Business Journal Staff Reporter
Feb 9, 2009

FAIRFIELD – AAA Northern California announced plans to occupy about 52,000 square feet of office space in Solano and move about 225 employees, which represents about 15 percent of the area’s annual job growth.

“More and more companies are looking to Solano to locate because we are still considered part of the Bay Area but at a lower price point,” said Curt Johnston, City of Fairfield assistant community development director.

“Also the available labor force – about 70,000 people commute out of Solano to work every day – is a big driver.”

He said the office vacancy rate dropped by about 14 percent last year and continues to keep pace with the increase in supply despite significant losses in real estate and title company offices. The county is also well-positioned for manufacturing and biotech growth because of its advanced high-quality treated water facilities, which are currently undergoing expansions.

Officials with AAA, a national insurance, financial and travel services provider, said they are currently making tenant improvements to their new office at 5251 Business Center Drive, and employees should begin moving in this spring and complete the process by June.

About 165 positions from the company’s San Francisco headquarters will move to the North Bay location, and about 60 others will relocate from an office already in Fairfield. The site will include positions in accounts receivable, billing, corporate mail, membership operations, records services and travel accounting.

“Where we locate specific functions is based on what makes the most sense for the business unit and the company, and the new Fairfield location is a perfect fit,” said AAA spokesman Matt Skryja.

“The addition of more jobs in Fairfield means not only an economic boost for the Solano County economy, but it also is the most efficient and cost-effective way to organize our work groups.”

The office will utilize about half of the one-story building recently vacated by State Compensation Insurance Fund, which completed a new $77 million, 255,000-square-foot building in Vacaville this October. The site currently houses about 750 employees, but the workers’ comp insurer indicated it might add another 400 in the future.

Also in the pipeline, Frank-Lin Distillers Products out of San Jose is planning a 23-acre, 280,000-square-foot office building, though the project still needs approval.