Commercial Real Estate in San Diego Evolving into Primary Market
San Diego, CA is becoming increasingly attractive for global investors. As it attracts more interest, commercial real estate in San Diego has taken a significant step forward. Commercial mortgage lending and real estate sales have been gaining strength and momentum, with demand building over the last 18 months. Many domestic and international investors are looking to secondary markets for the best returns as inventory and cap rates dwindle in gateway cities like Boston, New York, Miami and San Francisco. While there are many debates on exactly which cities make up secondary markets, Real Capital Analytics defined them recently as including: The CCIM Institute reports these areas are gaining in sales and leasing activity, demand and value, and poised to deliver among the best returns for investors. This is pushing the status of cities like San Diego up to primary market rankings among international commercial real estate experts. Even tertiary markets like San Diego County have been surging in popularity with commercial real estate investors. Often this is not only on the basis of enjoying better returns, but being able to get solid yields on A class properties in these markets. This isn’t just good news for investors taking an interest in commercial real estate in San Diego, but residential ones as well. Increased commercial activity signals more business growth and inbound capital. This lifts the local economy, adds jobs and spurs growth and home values too. We may just be at the beginning of this upward spiral, but this is clearly the best time to get in.