Report: San Diego Retail Leasing Surges for Strong 2022 Finish
The San Diego retail market had an impressive rebound in the fourth quarter, posting increased leasing activity to the tune of 123,000 square feet positive net absorption. Additionally, according to a new report from CBRE, vacancies decreased in nearly all submarkets and across most center types to 4.9%, which is the lowest since the pre-pandemic era.
One reason for the leasing activity uptick may be the decline in average asking rates, which dropped to $2.36 NNN per square foot in Q4, a reduction of $0.11 from Q3. It’s the first rate drop in four quarters, but still remains five cents higher than Q4 in 2021.
CBRE’s outlook for early 2023 remains positive, despite inflation and a possible recession. The region’s lofty salaries, expanding tech environment and rapidly growing life science industry has confidence high among retailers. When you toss in tourism and recreational spending, the San Diego retail market should see continued success.
Mark comes to ConnectCRE with an extensive background as a business and news reporter in San Francisco radio, as well as 35 years as a traffic reporter on several stations including KGO, KNBR, KCBS and KFRC. As a business reporter, Mark covered the tech world in Silicon Valley where he became familiar with real estate transactions in the hot Bay Area marketplace. He attended San Jose State University with a BA in Radio and TV Broadcasting and currently resides in the Lake Tahoe area where he gets to frequently enjoy all of his favorite activities: Golfing, Fishing, Hiking and Skiing.