San Diego Retail Figures Q4 2022

San Diego Retail Market Continues to Flourish

• San Diego Retail market made a strong rebound in Q4 with increased leasing activity and strong positive net absorption. Q4 Net absorption totaled 122,879 sq. ft. of positive absorption, and leasing activity reached 340,336 sq. ft. in Q4.    

Lowest Vacancies Since 2019

• Vacancies have continued to fall quarter-over-quarter and are at its lowest since Q3 of 2019. Vacancies decreased in nearly all submarkets and across most center types. Demand continues to stay strong, however, without any new construction, tenants may be locked into their spaces for the long term.

Lease Rates Drop for the First Time in 2022

• After climbing the entire year of 2022, leases rates fell to $2.36 NNN in Q4. Subsequently, rents stayed consistent across most submarkets and for all retail product types, expect in North County and SW Riverside.