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Market Report

San Diego Retail Market Report

4Q 2023

Demand Across Diverse Consumer and Tenant
Base Supports West Coast’s Strongest Rent Growth

Locals and visitors each play a role. Retail vacancy in San Diego County compressed by 130 basis points over the 24-month span ending in June. This encouraging momentum has the potential to continue, as a collection of upward economic trends are poised to support a resilient consumer base moving forward. Aiding spending at necessity and experiential retailers, the metro’s median household income rose 5.1 percent over the yearlong span ending in June, exceeding the national rate of increase. Tenants heavily reliant on tourism are also benefiting, as visitor volumes are elevating. Through the first three quarters of 2023, a year-over-year rise in arrivals at San Diego International Airport was noted, with the metro’s hotel occupancy rate only outdone by New York and Oahu. Should these dynamics sustain a potential rise in spending, both locals and visitors could facilitate additional retailer demand for space. 

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