2024 Has Strong Outlook for Small Scale Development, Tourism Influence on Local Economy
Urban Property Group (UPG), a real estate services firm specializing in urban and coastal commercial property, observed interesting trends for the local commercial real estate market in 2023 and has insights for what CRE can expect in 2024.
In 2023, San Diego’s Downtown, especially the Gaslamp and Little Italy neighborhoods, as well as the North Coastal neighborhoods like Carlsbad Village, saw strong metrics for restaurant and retail leases. UPG has executed 38 leases in San Diego totaling over $31 million in consideration and 12 sales totaling over $44 million, with the most recent sale in Gaslamp of 951-955 5th Ave. for $4.878 million.
“Throughout this year, we noted a consistent flow of small-scale development and repositioning deals,” said Joe Brady, Principal of UPG. “The interest in investment, development and leasing for downtown and coastal San Diego remained healthy as we wrap up the year, and we continue to see demand into the New Year.”
Looking ahead to 2024, UPG anticipates a shortage of space to lease and expects the slow pace of large projects and developments coming to market to persist.
“Tourism continues to be a major factor in San Diego commercial real estate, keeping restaurants and retail leasing consistent,” said UPG Principal David Maxwell.
UPG has helped shape the Downtown and Coastal San Diego markets by helping attract and locate a diverse range of restaurant and retail businesses in those neighborhoods.
“The office leasing market is still sluggish, which has affected investment sales and cap rates,” said UPG Principal Amy McNamara. “Owner-user activity along the coast Is still seeing record pricing and well positioned assets are still in demand, however, pricing has stabilized.”
“We are fortunate to have fostered amazing relationships with terrific clients over the years, as evidenced by our many deals completed and our close connection with stakeholders within the community,” said UPG Principal Serena Patterson. “We look forward to making more strides in 2024.”
UPG also anticipates expanding its office in the new year.
“The team recently hired expert Julissa Baxter, who brings eight years of experience practicing commercial real estate in the Texas market prior to making her way to California,” says Bill Shrader, founder of UPG. “With her extensive knowledge in retail leasing and investment sales, and her commitment to client satisfaction, Julissa is well equipped in providing value to Urban Property Group and her newfound market.”
For more information about UPG, please visit www.upgsocal.com.
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About Urban Property Group
Urban Property Group, Inc., (UPG), www.upgsocal.com are neighborhood experts from Downtown/Central San Diego to North County coastal. Founded by Bill Shrader in 1989, the team has over 100 combined years’ experience providing advisory, sales and leasing services to urban property owners. UPG understands the neighborhood dynamics that we work and live in and maintains close relationships with clients and tenants to create multi-dimensional communities. UPG offers more exact results to clients by allowing our seven professionals to focus on their individual areas of expertise and unique neighborhoods. UPG also maintains a dedicated analyst and support system specific to urban commercial assets from retail to office and multifamily. Find us on our website and follow us on Instagram.