SMALL-BAY INDUSTRIAL PIPELINE PICKS UP IN SAN DIEGO

Costar

Although the amount of available space in San Diego's small-bay industrial buildings has nearly doubled in the past 12 months, a sizeable share of that rise can be attributed to pipeline growth.

But even as the pipeline has picked up, it likely has not reached the level to satisfy demand.

SAN DIEGO HAS THE 3RD HIGHEST CONSUMER PRICES IN THE U.S. HERE'S WHY INFLATION FEELS LIKE IT ISN'T GOING AWAY

San Diego Union Tribune

The national inflation rate was 3.2 percent, still above the Federal Reserve’s target of 2 percent. Annually, the largest gains have been in shelter and food costs. San Diego’s biggest annual gains are similar to the rest of the nation’s, but just at a much higher rate. For example, San Diego’s rent was up 9.2 percent in contrast to 5.8 percent in Los Angeles, 7.5 percent in Boston and 4.7 percent in Minneapolis.

RETAIL OPENINGS HAVE ECLIPSED CLOSINGS SO FAR THIS YEAR

Globe St.

Shopkeepers appear to be brushing aside the gloomy scenario of the past few years with a more cheerful outlook on the future. “Retail tenant move-ins (openings) eclipsed move-outs (closings) by 21 million square feet during the first half of the year. Demand for space has now increased for 10 consecutive quarters,” according to the CoStar Group Real Estate Data Update for August 2023.

TECH MARKETS PERFORMANCE INDEX: AI INVESTMENT BOOSTING OFFICE MARKETS

Moody's Analytics

The national office market has been on rocky footing for a few years now, but better leasing activity combined with limited construction prevented vacancy rate spikes as expected this quarter – vacancy actually fell to 18.8%, while rent grew by 0.2%. What else was happening in Q2? Artificial intelligence (AI) investment skyrocketed in the tech sector.

FINANCING ENERGY EFFICIENCY IN CRE

Moody's Analytics

With the proliferation of local emissions reductions laws and the growing demand for energy efficient buildings, property owners are increasingly looking for green financing options. Triple net leases in particular make it hard to justify capital expenditures on energy efficiency retrofits when the cost savings are largely passed to the tenants. However, there are strategies for property owners to earn a positive near-term ROI on their energy efficiency upgrades.

FEATURED PROPERTIES

At Lee & Associates, our reach is international but our expertise is local market implementation. With offices across the nation and Vancouver, Canada, Lee & Associates is one of the largest and fastest growing commercial real estate organizations in North America. 

Founded in 1979, our experience and expertise offers extensive local market knowledge, seasoned agents, industry leading technology, and a commitment to achieving our clients long-term real estate goals and successes. Lee & Associates understands real estate and accountability, and provides an integrated approach to leasing, operational efficiencies, capital markets, property management, valuation, disposition, development, research, and consulting.

Commercial Real Estate Questions? 

Please Contact:

Steve Malley

smalley@lee-associates.com

858.453.9990

www.lee-associates.com/sandiego