2022 Q3 Retail San Diego Region
- San Diego County’s retail vacancy rate dropped 30 basis points to 3.96% in Q3 2022 – its lowest rate since Q3 2017.
- Nearly 402,000 SF of net absorption was recorded in Q3 2022, adding to 1.06 million SF of net absorption recorded year-to-date.
- The average asking rate of $2.20/SF, increased by $0.04 over the course of the quarter and is up by $0.15 for the year.
San Diego retail demand still strong after five consecutive quarters
The COVID pandemic related restrictions have been mostly lifted throughout San Diego County in 2022, and the result has been a significant improvement in retail demand. Over the last year-and-a-half, retail net absorption has exceeded 1.85 million SF causing vacancy to drop from a high of 5.48% in Q1 2 021 to a current rate of 3.96%. Retail employment has reached 140,100 workers countywide of which 28,100 workers were added since the lowest point of the retail lockdown in April 2020. For the first half of this year, retail and restaurant sales vol ume was up 13.6% compared to the first half of last year. However, concerns of a possible recession loom over demand in Q4 and pos sibly into early 2023.