However, renter demand remained strong and kept apartment occupancies steady in 2017, says RealPage. The coming year will see a dropoff in new deliveries.
Additional options are opening up for tenants searching for space under 30,000 square feet, a segment of the market in better supply-demand balance, with the 2,000 to 50,000-square-foot slice definitely picking up.
“The retail market continues to be actively bid upon by private as well as institutional investors alike as they look for quality and yield,” says HFF's José Cruz.
JLL reports that 2018 is poised to be another banner year for San Diego, with 650,000 square feet of tenants scheduled to take occupancy, 440,000 square feet of build-to-suits to deliver and 3.7 million square feet of tenants touring the market.
Tenants are trying to hedge against rising rents and lower vacancy, plus landlords are requiring longer terms in order to stabilize an asset or secure debt, JLL's Byron Foss tells GlobeSt.com.