Legacy Commercial Management / Uncategorized  / How San Diego’s Commercial Market is Changing

How San Diego’s Commercial Market is Changing

If you’ve lived or worked in San Diego for a while, you know that there are certain things that you can always expect. The weather will always be beautiful, you’ll always be able to grab a craft beer wherever you are and you’re likely to see more people jogging than walking on any given day. Despite the increase in the population of San Diego in the past decade, the city has stayed true to its roots and true colors. Though this is true of the culture of the city, the story is different when it comes to commercial real estate. Many factors play into why and how San Diego’s commercial real estate market is changing and affect the way that the market will look in years to come.

San Diego’s Commercial Market is Changing

San Diego has a bit of a real estate conundrum on its hands. The city has been attracting people and businesses in droves in recent years, which is a great thing in most senses. As businesses and organizations are building their company in San Diego or just adding a branch, they have been increasing the commercial construction in the city. But while this construction is great for the area, it is not happening across the board. While commercial real estate has had a boom, residential real estate has taken a back seat. This unsustainable difference between the two markets is bound to force some changes in both types of real estate.

Residential real estate in California, especially in San Diego, has not been growing nearly as fast as it should in order to meet the demands of the market. California has the most expensive rents in the country, and San Diego has the eight most expensive rents nationwide. Even though the market has been down in the past few months, the scarcity of homes on the market has led prices to go far up, even though fewer people are competing for the home.

While residential real estate is struggling to keep up with demand, people are still paying the high price to live in San Diego and they’re adding to the vibrant life of the growing city. Downtown San Diego has been absolutely booming in recent years, something that is driven partially by the amount of tech firms that are coming to the area and by the large number of millennials who are putting down roots in San Diego. The explosion in the downtown area has drastically increased demand in commercial real estate and it looks like the market is only set to expand.

The expansion in San Diego is great for the commercial property management market and it is forcing the market to come up with creative ideas to accommodate for the growing number of businesses and residents. A plan that was just recently adopted in Mission Valley by the San Diego City Council is aimed at shifting focus away from the roads and instead turning it to the river and trolley system in the city. This 30-year plan is forecasted to create room for around 50,000 residents and 7 million square feet of commercial development. Innovative plans such as this one are the future of San Diego, as they place importance on environmental impact, alternative transportation and access to public parks.

There are dozens of huge new development projects that have begun or are scheduled to begin around San Diego. As new residents, new businesses and new trends hit San Diego, the commercial real estate market plays a pivotal role in determining how the city will look in the years to come. The San Diegan commercial market is on fire and will most likely be strong for a long time to come.