San Diego Retail Figures Q4 2023
Vacancy Approaches Record Lows in 2023
- From the start of the year, total vacancies decreased by 20 basis points.
- Central San Diego vacancies at year-end matched the submarket’s lowest figure on record.
- A lack of construction has helped keep occupancy tight, as only two small-scale projects have delivered since 2020, including one in Q1 2023.
Demand Positive for a Third-Consecutive Year
- The year concluded with three consecutive quarters of positive net absorption.
- Established areas led the way, with San Diego’s three largest submarkets posting the strongest demand in 2023.
- New leases of 15,000 sq. ft and greater increased dramatically compared to 2021-22.
Asking Rents Again Move Higher
- The average asking rent expanded by $0.02 in Q4, marking the second consecutive quarter rates have increased.
- Rent gains were relatively widespread, with three submarkets realizing growth in Q4.