SAN DIEGO-“Sales volume continues to be limited in the Southern California marketplace due to a lack of sellers and a plethora of buyers, resulting in high demand and prices.” We recently touched base with Real Estate Forum top broker team Dixie Hall, first vice president of CBRE San Diego, along with Kevin Mulhern, SVP and Rachel Parsons, senior associate, on their thoughts on the San Diego market.
According to the team, cap rates are anticipated to remain level near the low 4% range in the A class properties, with continued downward pressure on cap rates for B and C class assets. This is “due to the low interest rate environment and lucrative cash on cash returns achievable in this product type—particularly with value-add opportunities,” the team says.
Rental demand and rates are expected to grow as the employment market continues to recover and more jobs are created, the team points out.
“New development remains the buzz word in Southern California apartments. There is plenty of demand for new deliveries and isolated submarkets may see concessions and occupancy dips for the short term. Overall the absorption rate should be strong as renters by choice are eager for new product.”
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
