What’s going on with San Diego’s commercial real estate market and what impact will it have on the local residential housing market?
Having hit bottom late in 2012 the San Diego office and retail market is said to be primed for a new period of growth in 2013.
The San Diego Daily Transcript and highlights from the 2012 San Diego Economic Forecast Conference show local commercial real estate vacancy rates heading down with retail barely touching a healthy 6%. At the same time rents are predicted to continue to grow over the next year. This together with incredibly low interest rates makes for great cap rates and yields for investors from all over the world.
Multifamily is obviously doing extremely well if you can get your hands on some. In fact new multifamily construction in San Diego County is expected to take off in the New Year and perform very well.
While commercial real estate investment isn’t for everyone a strong office and retail sector means great things for the local Southern California economy and even greater things for the residential market.
This together with the popularity of San Diego as an international vacation and second home destination as well as a hot tech startup hub suggests a profitable year ahead for real estate investing.
At the same time a continued upward push in San Diego home values will be welcomed by homeowners who see their equity return, many of whom are likely to take advantage of the market and sell, furthering fueling home prices.
On this demand and increasing ability to sell will continue to keep this slice of Southern California in the media as one of the healthiest markets in the country even if negotiations on the fiscal cliff don’t go the way everyone would like.
