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Retail Rental Market in San Diego County
In Q2, 2018 the retail real estate market has seen the highest increase in commercial real estate rental rates. This rise in rental rates is due to economic optimism and high leasing activity. Rental rates increased by $0.13 per square foot over last quarter to $2.35 NNN per square foot — the highest rate on record according to CBRE. The rate at which tenants absorbed retail space was negative 83,225 square feet, and vacancy rate increased by 10 basis points to 4.7%. The San Diego unemployment rate, which is closely correlated to the health of the commercial real estate market fell to 2.9% — the lowest in 18 years. The retail vacancy rates for all of San Diego County are: North County has a 4.5% vacancy rate, Central County has a 3.6% vacancy rate, and South San Diego County has a 4.9% vacancy rate. As mentioned earlier, the overall vacancy rate is 4.7%.
