Based on our research, market conditions are expected to improve across all property types in San Diego. The following charts detail current rental and vacancy rates for office, retail and industrial property types in San Diego in comparison with the rest of the region and the United States. Following these current snapshots is a 12-month forecast of the change in market rent, the amount of square feet absorbed, the amount of construction completed, and the estimated allowance for tenant improvements.
From a rental standpoint, the San Diego office market is generally in line with the rest of the region. The Class A suburban office market is posting significantly higher rental rates and lower vacancy rates than the regional and national data, in part due to increasing demand in UTC and Del Mar Heights. Overall, rental rates are expected to increase between 4% and 5% (depending on property type) over the next 12 months.
Most of the San Diego retail data is in line with the regional and national figures, but the notable trend is regional mall vacancy in San Diego, which currently stands at less than 1%. This will probably change when Westfield UTC completes its 750,000 square foot expansion, but nevertheless San Diego’s regional malls continue to outperform the other market regions. Rental rates are expected to increase at modest rates of 2% to 3% over the next 12 months.
The notable trend for San Diego industrial space is the low vacancy rate for Class A industrial properties, which is expected due to limited product currently available and limited product expected to be delivered. Market rent is expected to grow at a rate of approximately 4% for this space and flex space.
This information is a preview of the Midyear Viewpoint, a semiannual publication from IRR that highlights trends across the country. For information on other markets in the United States, check out the Publications section of IRR’s website. The complete San Diego Midyear Viewpoint will be available on IRR San Diego’s Blog.
For more information on San Diego commercial real estate trends, or if you are in need of a commercial appraisal, please contact us at 858-259-4900 or email@example.com.
Social tagging: Del Mar Heights real estate appraisal > Eric Schneider Appraiser > Industrial Property Appraisal > Industrial Property Valuation > office property appraisal > Office property Valuation > Retail Property Appraisal > Retail Property Valuation > San Diego Commercial Real Estate Appraisal > San Diego Commercial real estate appraiser > San Diego commercial real estate valuation > San Diego MAI Appraiser > San Diego Real Estate Market Trends > UTC real estate appraisal