| |
|
The closure of many major retailers along with an anemic holiday shopping season resulted in a severe negative demand for space in the first quarter of 2009. Vacancy accelerated at a quick pace as net absorption reached close to a negative 900,000 square feet. Compared to Q4 2008, this equated to more than a ten-fold increase in space returned to the market and more than twice the space vacated in all of 2008.
Q1 countywide vacancy increased to 4.8 percent compared to 4.1 percent in the previous quarter and 3.7 percent one year ago. With the exception of Carlsbad and Oceanside, the North County submarkets posted some of the most severe negative net absorption and highest vacancy rates in the county.
Net absorption totaled a negative 890,943 square feet in Q1. Retail leasing activity volume declined with less than 355,000 square feet leased in Q1. Eleven submarkets posted over 40,000 square feet of negative absorption.
Fortunately, over-supply of new space will not compound the effects of negative activity on vacancy. A mere 137,147 square feet of new space was completed in Q1 and only another 331,514 square feet is scheduled for completion during the remainder of 2009. Future supply, totaling a proposed 1.7 million square feet, is not likely to commence construction in either 2009 or 2010.
In Q1 2009, the asking rents averaged $2.03 countywide – 5 percent lower than one year ago. Retail investment sales volume has fallen off significantly in terms of total sales and total dollar sales volume. Only 25 sales were recorded in Q1 2009.
Contact Chris Reutz at 858.677.5385 for more information.
  San Diego Knowledge Report - Retail - 2009Q1.pdf
Email Report Link To Your Friend
|
|