AN OPTIMISTIC EXPERT THINKS CRE IS ABOUT TO BOOM

Globe St.

The Federal Reserve raised the federal funds rate beginning in March of 2022 from 0.0% to 5.25%, where it stands today. All the pundits who predicted over the last two years that the CRE market would crash, and many community and regional banks would go under from the weight of defaulted CRE loans, have again been proven wrong.

AMAZON LOOKS FOR EXPANDED WAREHOUSE NETWORK TO SPEED GROCERY, MEDICINE DELIVERY

Costar

Online retailer Amazon could use its growing network of regional fulfillment centers to expand its

grocery and pharmacy business, potentially using the warehouses as drone bases to deliver medicine and perishable items like eggs and milk by air in less than an hour.

RISING AVAILABILITY AND VACANCY HIGHLIGHT SAN DIEGO'S INDUSTRIAL MARKET

Costar

San Diego’s overall industrial vacancy rate climbed to 6.6% at the end of the first quarter. That was nearly three percentage points higher than the first quarter of 2023 and the highest level since 2014. Market participants have noted that San Diego’s industrial market is not normalizing but is instead navigating a period of weaker demand.

MULTIFAMILY RENT GROWTH DERAILING FED'S PLANS TO DROP INTEREST RATES

Bisnow

Continued apartment rent growth is helping deter the Federal Reserve from cutting interest rates, driving up inflation at a time when the Fed is seeking signs of a cooldown. Shelter inflation, the government’s measure of home and apartment rents, rose 5.7% in March from a year prior, The Wall Street Journal reported. This is notably higher than the average shelter inflation rate of about 3.3% from 2015 to 2019 and was a large driver of March consumer price index results that will likely delay an interest rate cut.

IS THE NEGATIVE EFFECT OF THE $20 FAST FOOD MINIMUM WAGE OVERBLOWN?

San Diego Union Tribune

Earlier this month, California fast-food workers started earning a $20 an hour minimum wage. The

law applies to restaurants offering limited or no table service and which are part of a national chain with at least 60 establishments nationwide.

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