Q2 2012 San Diego, California Retail Submarket Trends

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Q2 2012 San Diego, California Retail Submarket Trends

Northeast County

  • In the Northeast County submarket, the second quarter 2012 vacancy rate is 4.6% for 3.8 million square feet of anchor space, and 7.9% for 5.0 million square feet of non-anchor space, according to Reis. The average asking rent for anchor space is reported at $17.66 psf, while for non-anchor space the average asking rent is reported at $29.35 psf.
  • The overall vacancy rate of 6.4% is down 10 basis points from the previous quarter and down 30 basis points from a year earlier. The average asking rent and the average effective rent were both unchanged for the quarter, the latter at $25.97 psf.
  • For the I-15 Corridor, Voit Commercial reports total vacancy at 7.24%, and an average asking rate of $21.12 psf. For general retail, Voit reports vacancy at 1.48%.
  • Cassidy Turley reports North County vacancy at 8.7%, and with an average asking lease rate of $23.16 psf. This submarket “continues to struggle with attracting tenants,” according to this source.

Northwest County

  • In the Northwest County submarket, Reis reports a second quarter vacancy rate of 2.3% for the 5.2 million square feet of anchor space, with an average asking rent of $20.89 psf, the highest among the submarkets. The vacancy rate for the 6.1 million square feet of non-anchor space is 11.1%, the highest among four submarkets, with an average asking rent of $30.90 psf.
  • The overall vacancy rate of 7.1% fell 20 basis points in the second quarter. The average asking rent and the average effective rent were up 1.1% and 1.2% over the quarter, the latter at $27.93 psf. Rents are up 0.8% and 1.0%, respectively, year-over-year.
  • For all of North County, Voit reports a total vacancy rate of 6.62% and an average asking lease rate of $24.96 psf. North County general retail is listed as 3.97% vacant.

West San Diego Beach

  • For the West San Diego Beach submarket, Reis reports a 0.9% vacancy rate and a $20.75 psf average asking rent for 2.0 million square feet of anchor space. For 3.4 million square feet of non-anchor space, the vacancy rate is 8.7%, and the non-anchor rent is $33.44 psf, the market’s highest.
  • The overall vacancy rate of 5.7% is down 10 basis points for the second quarter, and is down 40 from a year earlier. The average asking rent increased 0.3% during the quarter, while the average effective rent rose 0.4% to $30.01 psf. The year-over-year gain is 1.3% for both rent measures.
  • For the North City submarket, Voit reports vacancy at 3.89%, and an average asking rent of $19.20 psf. For general retail, this source reports vacancy at 2.27%.
  • For Central County, Cassidy Turley reports vacancy at 3.9% and an average asking rent of $25.08 psf.

South County

  • In the South County submarket, the vacancy rate is 2.0% for the 6.9 million square feet of anchor space, and 9.3% for the 8.4 million square feet of non-anchor space. The average asking rents of $17.00 psf for anchor space and $24.13 psf for non-anchor space are each the lowest among the submarkets.
  • The overall vacancy rate is 6.0% in the second quarter, down 20 basis points from the prior quarter and down 80 from a year earlier. Both the average asking rent and the average effective rent increased 0.7% for the quarter, the latter to $21.55 psf. The year-over-year gains were minimal at 0.2% asking and 0.4% effective.
  • For South County, Cassidy Turley reports vacancy at 6.0% and an average asking rent of $26.64 psf.
  • For its South Bay submarket, Voit reports vacancy at 4.94% and an average asking lease rate of $19.20 psf. General retail vacancy is listed at 3.63%.