August 5, 2016
Retail vacancy dipped to the lowest level San Diego has seen in eight years. Cushman & Wakefield’s latest market snapshot reported steady occupancy through the first half of 2016.
Overall vacancy, composed of both direct and sublease space, declined from a rate of 5% at year end 2015 to 4.8% at midyear 2016. This marks the first time overall vacancy dropped below 5% since mid 2008.
- Tenant demand continues to be driven by national and regional chains, most of which place a higher importance on the best class centers within each trade area, fueling strong demand for class A space.
- Coastal locations remain popular and command premium rents.
- Construction returned to the retail market in response to the housing recovery and limited vacancy of retail spaces.
- The grocery sector accounted for the lion’s share of the big-box activity in 2015, and is a trend that has continued to evolve in 2016.
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