“The health of San Diego’s commercial and residential properties in 2019 probably depends on job creation more than any other economic metric. Assuming that is true, San Diego real estate could have another healthy year”, writes Dees Stribling, Columnist for the online publication, Bisnow National.
Stribling took time to analyze the ever changing San Diego real estate landscape that is constantly playing a significant role in the economic structure and future development of the Greater San Diego Area. Stribling further discusses this hot topic in a recent interview with Parallel Capital Partners Managing Partner and CEO, Matt Root.
Job growth is the fundamental generator of demand for office space -Matt Root
“Tech-heavy markets with a lot of intellectual capital, a high quality of life and a STEM-oriented educational infrastructure — like San Diego — will continue to attract this talented labor pool,” Root said. “Commercial landlords who provide a compelling workplace experience here will benefit meaningfully from tech growth.”
“The retail, nightlife and residences in the surrounding neighborhoods are often the most critical amenity for any property,” the report said. “Typically North Cities locations such as La Jolla and Torrey Pines have enjoyed a competitive advantage in this respect.”
“As a firm, we’re optimistic about 2019,” Fabric Investments principal Brendan Foote said. “We expect some corrections in the regional market, but see the coastal market staying strong for both office and retail. In the first week of 2019, Encinitas-based Fabric Investments acquired the 15K SF 2110 South Coast Highway office and retail building in Oceanside for $3.75M. The company plans interior and exterior renovations to update the building. “We place a high value on investing within neighborhoods,” Foote said. “Our assets are in communities, and we see increasing demand for employers, residents and retailers to locate within these coastal towns in walkable settings and near public transit.” According to Thomas, there is a lot of energy in the community to improve the district, such as by launching a pilot program for a dedicated transit lane and public art projects in the Little Saigon District.
To read the entire interview with Matt Root, click here.