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Contact Us
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12230 El Camino Real
Suite 110
San Diego, California
92130
tel 858.794.5500
fax 858.794.5512
DRE# 01163646
dd 858.369.5417
dd 858.794.5510
dd 858.794.5512
dd 858.794.5504
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Users are becoming more efficient with their utilization of office space . In fact, the ratio of square footage per employee has dropped 20% over just the past two years. Statistics compiled by Wells Fargo Bank, analyzing offerings of commercial mortgage backed securities note that, when considering tenants over 100,000 square feet, an estimated 77.9 million square feet of office space will expire nationally over the next four years. These two issues can cause the lending market to become apprehensive in their lending practices which would not bode well for landlords of commercial office space. This could well affect the lending climate and landlord's ability to refinance in the near future.
According to the California Department of Finance, we can hope for a slightly improved economy driven by more births, the migration of people into California, and fewer residents leaving. Historically, at economic peaks, California was adding approximately 600,000 people a year. While California recorded an increase last year, it was a more modest 298,000 people. San Diego experienced slow growth (0.7%) and San Marcos continues to be the fastest growing city on the county. Currently, most of the new housing being developed is densely built multifamily units. It will be interesting to see if this trend continues.
San Diego has increased the Enterprise Zones as of the last quarter of 2012 to include additional areas of San Diego including Kearny Mesa and Sorrento Mesa. We believe there can be substantial savings to many companies located in the Enterprise Zone areas of San Diego County. Through our national affiliation, we can quickly assess whether there is a benefit to you. Ask us to find out!
All the best,
Don Mitchell
Managing Principal
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 Changing to Zoning Laws Will Allow Breweries to Open Restaurants and Tasting Rooms
SD Metro
 The City Council Tuesday unanimously approved changes to zoning laws that will allow San Diego's burgeoning craft brewing industry to open full-service restaurants and tasting rooms, City News Service reports. The amendments end restrictions that kept brewers from expanding. "This is how you retain businesses," council President Todd Gloria said. He noted that some area breweries have been courted by neighboring cities. Brewers that have at least 12,000 square feet of floor space in zones that allow light manufacturing will be able to open eateries or tasting rooms larger than 3,000 square feet in size under the ordinance. Supporters of the breweries say the previous limit of up to 3,000 square feet was too limiting.
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Large Lease Rollovers Pose Loan Risks in Era of the Shrinking Office
CoStar
The trend in less square footage requirement per employee has serious implications for landlords with near-term lease rollover risk, according to new analysis from Wells Fargo Securities.
Older existing office leases initially written in the era using the higher square footage requirement per employee are likely to renew under a more efficient standard.
Looking at tenant data backing commercial mortgage backed securities offerings, Wells Fargo found roughly 15.1 million square feet of lease rollover in 2013, 20.2 million square feet in 2014, 23 million square feet in 2015 and 19.6 million in 2016 for leases larger than 100,000 square feet.
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Population Study Hints at Trends
San Diego Union-Tribune
New population estimates reflect a slightly improved economy driven by more births, a gradual recovery in the migration of people moving into California and fewer residents leaving the state, according to figures released Wednesday by the California Department of Finance.
The 2013 estimate also showed an uptick in new housing, most being multifamily units. Demographers said it's too soon to tell whether the trend will last, but it could be an early sign of increased urbanization and density.principal.
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Current Market Statistics
Sorrento Mesa & Sorrento Valley
Last month we provided stats for UTC class "A" office properties. This month we focus on flex properties in the Sorrento Mesa and Sorrento Valley submarkets. Enjoy.
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About Cresa
Cresa is an international corporate real estate advisory firm that exclusively represents tenants and specializes in the delivery of fully integrated real estate services, including: Transaction Management, Project Management, Corporate Solutions, Portfolio Strategies, Location Planning, Lease Administration, Capital Markets, Mission Critical Solutions, and Facilities Services. With more than 58 offices, Cresa is the largest tenant representation firm in North America. Through its partnership with Savills, one of the world's largest commercial real estate services firms; Cresa covers more than 173 locations in 40 countries. For more information, visit www.cresa.com. |
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