This Submarket is Not What It Used to Be

Clark: “Santee is a community that caters to families, and the household income numbers are surprising.”

SANTEE, CA—The perception that many outsiders have of Santee, CA, is one of a backwater town with not much going on, and that is just plain wrong, the Heritage Group ‘s senior director Kyle Clark tells GlobeSt.com. The firm recently represented Santee Station LLC in signing Whissel Realty and Mimi’s Nails for five-year leases at the retail center Santee Station . Jeff Gilbert of Kidder Matthews represented Whissel Realty , while Tiffany Nho Le , DBA Mimi’s Nails , represented herself. As we reported in June 2015 , the Santee City Council had recently approved the Santee Station development group for the four-building commercial center , located on 2.65 acres at 8866 N. Magnolia Ave. here. Construction on the center began late last year, and completion is anticipated in September, with a few suites still available. The total project size is expected to be 17,170 square feet. We spoke exclusively with Clark about the property, what makes it unique and what the Santee market has to offer retail tenants. GlobeSt.com: What makes Santee Station a unique property? Clark: It’s unique because it is the first new development at the eastern gateway to the city in several years. The other developments on the remaining corners of Mission Gorge and Magnolia Ave. have significantly older improvements that do not offer the shopping and office experience that Santee Station does. With Starbucks now open and the Omelette Factory opening in two weeks, high-volume traffic will flow through the center, which will benefit the other smaller tenants that are coming in September.

A rendering of Santee Station before the top floor was added due to high demand.

GlobeSt.com: What does the Santee market have to offer retail tenants? Clark: The Santee market has changed a lot over the past decade. The perception that many outsiders have is one of a backwater town with not much going on, and that is just plain wrong. With the new housing that has developed over the past several years, the demographics have changed significantly. Santee is a community that caters to families, and the household income numbers are surprising. In a 2016 study of 18 communities in San Diego County, Santee ranked 7 ^th at $79,865. All of those that ranked higher were coastal communities with the exception of Poway. Compared to the other East County communities, Santee is tops as opposed to La Mesa (11 ^th ) and El Cajon (17 ^th ) GlobeSt.com: How does Santee compare to other submarkets of San Diego for retail space? Clark:  If you consider the household income information above, Santee is drastically underserved in the quality of businesses and shopping centers when compared to other communities that ranked lower in the study. I have spoken with various retailers about Santee Station, and their initial reaction is that Santee isn’t the type of market for which they look. If they will look at the statistics, they will learn that it really is where they should be. GlobeSt.com: What else should our readers know about Santee Station? Clark: This location sits at the eastern entrance to the city, with the 52 and 67 freeway ramps just a couple blocks away. The 67 connects two exits south to Interstate 8. With the renewed strength of the market, the proximity to access from outside the city and a new development of very high quality, Santee Center will not only be successful. It will encourage other surrounding property owners to upgrade their sites since additional demand will surely follow.