SUBURBAN OFFICE SALES OUTPERFORMED CBDS IN Q1

Globe St.

Suburban cap rates have increased faster than those for CBD offices over the last year, MSCI reported, with the RCA Hedonic Series cap rate up 50 basis points in the first quarter from a year ago to hit 6.8%.

ANALYSTS SAY HOTEL FUNDAMENTALS STRONG DESPITE COMPLICATED COMPARISONS, ECONOMIC CHALLENGES

Costar

Despite concerns over inflation, rising interest rates, bank failures and other challenges to the overall economy, hotel industry analysts expect executives at hotel brand companies and real estate investment trusts will have mostly positive reports for the first quarter because the industry fundamentals are still strong.

SAN DIEGO APPROVES STRICT NEW RENTER PROTECTIONS IN LATE-NIGHT MEETING

San Diego Union Tribune

The biggest part of the new law would require a landlord to give a tenant two months’ rent if they evict them for no reason. These “no-fault” evictions include a renter being asked to move for a significant remodel of the property, if the owner decides to take the unit off the rental market, or, simply, a landlord deciding after a lease term not to renew a particular tenant.

APARTMENT SALES ACTIVITY SLOWS DOWN IN SAN DIEGO

Costar

San Diego’s apartment investment market has entered a period of waning investor demand amid a high interest rate environment. Parties are navigating a period of pricing discovery as many owners are still offering properties for sale at peak pricing from early 2022. As the cost of debt has increased, valuations have fallen from that peak and property expenses from maintenance to insurance have all increased.

OFFICE SPACE DEMAND SHAKES OFF THE WINTER DOLDRUMS

Connect CRE

Springtime office demand got off to an especially strong start in March following the slower winter months, VTS reported. According to the latest VTS Office Demand Index (VODI), national demand for office space rose 31.3% from February to March, surpassing the month-over-month March growth recorded in pre-pandemic 2018 and 2019.

FEATURED PROPERTIES

At Lee & Associates, our reach is international but our expertise is local market implementation. With offices across the nation and Vancouver, Canada, Lee & Associates is one of the largest and fastest growing commercial real estate organizations in North America. 

Founded in 1979, our experience and expertise offers extensive local market knowledge, seasoned agents, industry leading technology, and a commitment to achieving our clients long-term real estate goals and successes. Lee & Associates understands real estate and accountability, and provides an integrated approach to leasing, operational efficiencies, capital markets, property management, valuation, disposition, development, research, and consulting.

Commercial Real Estate Questions? 

Please Contact:

Steve Malley

smalley@lee-associates.com

858.453.9990

www.lee-associates.com/sandiego