Downtown San Diego Retail Market Takes Off

SAN DIEGO-Downtown San Diego’s retail market is really taking off, as the area is experiencing a significant spurt of new construction, according to research recently published by Burnham Real Estate.The Burnham report points out that the “growing demand for retail and entertainment services has generated 1,045,000 sf of new retail space that is either already under construction or planned to commence construction within the next several years.” Burnham’s retail specialists attribute the surge in development to the demand brought on by new residential and especially office product in the area. “Until recently, all the growth has been hotels and residential in the form of apartments and condos,” says Bill Shrader, vice president with Burnham Urban Retail Group. “However, with the new Broadway 655 office tower and planned TR Produce and DiamondView office projects at Petco Park, retail is expanding even more to meet the needs of what has become a true 24/7 live, work and play environment.”When it comes to new retail development, the East Village neighborhood leads the Downtown area, with more than 62% of new or planned construction located here. A total of 647,900 sf is currently rising or planned for the East Village district near Petco Park.The Marina is also experiencing an explosion in new retail growth, representing 13.2% of space under way or planned in Downtown. The Gaslamp Quarter follows with 9.3% and then Columbia with 6.9%.