A SNAPSHOT OF WHERE CRE DEBT MARKETS STAND RIGHT NOW

Globe St.

The landscape of CRE has undergone significant transformations throughout the year. This CRE market update delves into key trends and insights to help industry professionals understand the current landscape and what to expect for the last quarter of 2023.

INDUSTRIAL SUBLET SPACE IN SAN DIEGO REACHES HIGHEST LEVEL SINCE 2010

Costar

San Diego’s industrial availability rate has been on the rise in 2023, reaching 9.5% of total inventory at the end of the third quarter. That’s both the highest percentage and most amount of space, 20.1 million square feet, available since mid-2014. Yet, the rise in availability has not alarmed local market participants, but tenants searching for space, particularly in small-bay properties, still have limited options.

WEWORK, COMPANY CREDITED WITH POPULARIZING COWORKING SPACE, FILES FOR BANKRUPTCY

Costar

The New York-based company said in a statement that it filed for Chapter 11 bankruptcy protection Monday in the United States Bankruptcy Court for the District of New Jersey. WeWork added that it's "requesting the ability to reject the leases of certain locations, which are largely non-operational and all affected members have received advance notice."

STIMULUS-FREE HOLIDAY SALES TO GROW 3% TO 4%

Globe St.

With trillions of federal stimulus money in the past, and no more on the way, this year’s holiday sales are expected to return to more typical growth, according to the National Retail Federation (NRF), which forecasts a 3% to 4% increase compared to 2022.

CALIFORNIA MANDATES CLIMATE RISK DISCLOSURE

Moody's Analytics

The Climate Corporate Data Accountability Act mandates the disclosure of Scope 1, 2, and 3 emissions by companies with at least $1 billion in revenue. The Act requires the California Air Resources Board to adopt regulations guiding companies’ disclosure of all scopes of emissions by January 1, 2025, with the first disclosures of Scopes 1 and 2 due in 2026 and the first disclosures of Scope 3 due in 2027. Assurance by a third party will be required for all Scopes.

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