San Diego Retail Figures Q2 2024

Vacancy Remains Steady
‒Although Vacancy has been the same for four consecutive quarters, it remains only 30 basis points (bps) higher than the all-time low of 4.3% experienced in Q4 2018.
‒137,000 sq. ft. delivered vacant in Q2 2024, increasing Downtown’s overall vacancy to an all-time high of 20.4%.
‒With no significant retail projects currently under construction, occupancy remains tight. The retail space delivered in Q2 was the largest development completed in over five years.

Demand Turns Positive Once Again
‒Four of San Diego’s six submarkets posted positive net absorption, with North County reflecting the largest increase.
‒Neighborhood Centers accounted for the highest net absorption among all center types in Q2.

Asking Rents Bounce Back
‒In Q2 2024, the average asking rent improved by $0.04 to $2.28, a quarter-over-quarter (Q-o-Q) increase of 1.9%.