2010 Retail Market Statistics and 2011 Forecast
After a dismal 2009, there was a significant increase in activity in 2010 in the retail sector of commercial real estate in San Diego County (much like that of multi-family real estate market). The total dollar volume of sales nearly doubled from 2009. While dollar volume increased, we saw prices continue to decrease while cap rates continued to increase. In the rental market, we saw rental rates continue to decrease sharply while vacancy rates began to level off, or even decrease in some areas. We forecast that the values will continue to increase while cap rates continue to increase as we head into 2011. We also forecast that rental rates will begin to stabilize as vacancy rates decline.
We are seeing more and more distressed inventory hitting the market in the form of short sales and bank owned foreclosures. We forecast that the level of inventory in this sector will continue to increase as we head into 2011. Inventory in this sector is often priced very aggressively as the banks want to get these non-performing assets off their books as fast as possible. This has created a great opportunity for San Diego investors.
To find out how you can capitalize on the 2011 retail commercial real estate market in San Diego, give us a call at 858-699-3895 or shoot us an email to Kyle@WhisselRealty.com.
Average Price Per Sq Ft
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The average price per sq ft was down 12.3% from 2009 and down 27.5% from 2006
2010 – $213.81 : 2009 – $243.70 : 2006 – $294.77
Average Cap Rate
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The average cap rate was up 5.1% from 2009 and up 22.4% from 2006
2010 – 7.16% : 2009 – 6.81% 2006 – 5.85%
Vacancy & Rental Rates
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The vacancy rate was down 9.6% from 2009 and up 19.0% from 2006
2010 – 7.5% : 2009 – 8.3% : 2006 – 6.3%
The vacancy rate was down 4.6% from 2009 and down 7.3% from 2006
2010 – $1.65 : 2009 – $1.73 : 2006 – $1.78
Kyle Whissel
San Diego Real Estate Agent
858-699-3895
Kyle@WhisselRealty.com
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