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Market Report

San Diego Retail Market Report

2024 Investment Forecast

Metro Ranks Among West Coast’s Least Vacant Markets;
Local Single-Tenant Trading Also Stands Out

County’s largest submarket shines. San Diego’s retail sector continues to register steadfast demand. Last year, leasing volume mirrored that of 2022, with most commitments involving spaces comprising less than 5,000 square feet. The strong demand that exists for smaller spaces in shopping centers and standalone buildings suitable for restaurants and fast-food chains is holding vacancy below 5 percent. Demand is most apparent in Central San Diego, which ranks as the least vacant area among California submarkets with more than 25 million square feet of stock. Moving forward, local property performance will be aided by an increase in convention attendance and downtown events. Encouraging pre-leasing activity at the Campus at Horton, which will deliver 300,000 square feet of retail space this year, will also serve to assist local fundamentals. The outlook remains positive metrowide. Tourist-related spending and above-average household income growth will support retail sales, generating vendor demand for space that will equate to a moderate vacancy shift this year. 

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