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San diego year end 2012 retail report
- 2. San Diego Retail Market
©2013 COSTAR GROUP, INC. THE COSTAR RETAIL REPORT A
YEAR-END 2012 – SAN DIEGO
Table of Contents
Table of Contents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A
Methodology. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B
Terms & Definitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C
Market Highlights & Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
CoStar Markets & Submarkets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Inventory & Development Analysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Inventory & Development Analysis
Select Top Deliveries
Select Top Under Construction Properties
Figures at a Glance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Figures at a Glance by Building Type & Market
Figures at a Glance by Building Type & Submarket
Historical Figures at a Glance
Leasing Activity Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Select Top Lease Transactions
Sales Activity Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Sales Activity Analysis
Select Top Sales Transactions
Analysis of Individual CoStar Submarket Clusters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Central San Diego Market
East County Market
I-15 Corridor Market
North County Market
North San Diego Market
South Bay Market
- 3. San Diego Retail Market
B THE COSTAR RETAIL REPORT ©2013 COSTAR GROUP, INC.
SAN DIEGO – YEAR-END 2012
Methodology
The CoStar Retail Report calculates Retail statistics using CoStar Group's base of existing, under
construction and under renovation Retail buildings in each given metropolitan area. All Retail building
types are included, including Community Center, Freestanding Retail, Neighborhood Center, Power
Center, Regional Mall, Specialty Center and Unanchored Strip Center, in both single-tenant and multi-
tenant buildings, including owner-occupied buildings. CoStar Group's national database includes
approximately 80.7 billion square feet of coverage in 3.5 million properties. All rental rates reported in
the CoStar Retail Report are calculated using Triple Net (NNN) rental rates.
© Copyright 2013 CoStar Group, Inc. All Rights Reserved. Although CoStar makes efforts to ensure the accuracy and reliability of the
information contained herein, CoStar makes no guarantee, representation or warranty regarding the quality, accuracy, timeliness or
completeness of the information. The publication is provided ‘as is’ and CoStar expressly disclaims any guarantees, representations or
warranties of any kind, including those of MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.
CoStar Group, Inc.
1331 L ST NW • Washington, DC 20005• (800) 204-5960 • www.costar.com • NASDAQ: CSGP
For information on subscribing to CoStar’s other products and services, please contact us at
1-877-7COSTAR, or visit our web site at www.costar.com
- 4. San Diego Retail Market
©2013 COSTAR GROUP, INC. THE COSTAR RETAIL REPORT C
YEAR-END 2012 – SAN DIEGO
Terms & Definitions
Anchor Tenant: A large national or regional retailer that serves as
a primary draw for a shopping center; a store strategically located
in a retail property in order to enhance, bring attention to, or
increase traffic at the property. Sometimes called a “destination”
tenant, usually these tenants lease at least 25,000 SF.
Availability Rate: The ratio of available space to total rentable
space, calculated by dividing the total available square feet by the
total rentable square feet.
Available Space: The total amount of space that is currently
being marketed as available for lease in a given time period. It
includes any space that is available, regardless of whether the
space is vacant, occupied, available for sublease, or available at
a future date.
Buyer: The individual, group, company, or entity that has pur-
chased a commercial real estate asset.
Cap Rate: Short for capitalization rate. The Cap Rate is a calcula-
tion that reflects the relationship between one year’s net operating
income and the current market value of a particular property.
The Cap Rate is calculated by dividing the annual net operating
income by the sales price (or asking sales price).
Community Center: A shopping center development that has a
total square footage between 100,000 – 350,000 SF. Generally
will have 2-3 large anchored tenants, but not department store
anchors. Community Center typically offers a wider range of
apparel and other soft goods than the Neighborhood Center.
Among the more common anchors are supermarkets and super
drugstores. Community Center tenants sometime contain retail-
ers selling such items as apparel, home improvement/furnishings,
toys, electronics or sporting goods. The center is usually config-
ured as a strip, in a straight line, or an “L” or “U” shape.
Construction Starts: Buildings that began construction during a
specific period of time. (See also: Deliveries)
Deliveries: Buildings that complete construction during a specified
period of time. In order for space to be considered delivered, a
certificate of occupancy must have been issued for the property.
Delivery Date: The date a building completes construction and
receives a certificate of occupancy.
Developer: The company, entity or individual that transforms raw
land to improved property by use of labor, capital and entrepre-
neurial efforts.
Direct Space: Space that is being offered for lease directly from
the landlord or owner of a building, as opposed to space being
offered in a building by another tenant (or broker of a tenant)
trying to sublet a space that has already been leased.
Existing Inventory: The square footage of buildings that have
received a certificate of occupancy and are able to be occupied
by tenants. It does not include space in buildings that are either
planned, under construction or under renovation.
Freestanding Retail: Single tenant building with a retail tenant.
Examples include video stores, fast food restaurant, etc.
Full Service Rental Rate: Rental rates that include all operating
expenses such as utilities, electricity, janitorial services, taxes and
insurance.
General Retail: Typically are single tenant freestanding general-
purpose commercial buildings with parking. Many single retail
buildings fall into this use code, especially when they don’t meet
any of the more detailed use code descriptions.
Growth in Inventory: The change in size of the existing square
footage in a given area over a given period of time, generally due
to the construction of new buildings.
Landlord Rep: (Landlord Representative) In a typical lease trans-
action between an owner/landlord and tenant, the broker that
represents the interests of the owner/landlord is referred to as the
Landlord Rep.
Leased Space: All the space that has a financial lease obligation.
It includes all leased space, regardless of whether the space is
currently occupied by a tenant. Leased space also includes space
being offered for sublease.
Leasing Activity: The volume of square footage that is commit-
ted to and signed under a lease obligation for a specific building
or market in a given period of time. It includes direct leases,
subleases and renewals of existing leases. It also includes any
pre-leasing activity in planned, under construction, or under
renovation buildings.
Lifestyle Center: An upscale, specialty retail, main street concept
shopping center. An open center, usually without anchors, about
300,000 SF GLA or larger, located near affluent neighborhoods,
includes upscale retail, trendy restaurants and entertainment
retail. Nicely landscaped with convenient parking located close
to the stores.
Mall: The combined retail center types of Lifestyle Center,
Regional Mall and Super Regional Mall.
Market: Geographic boundaries that serve to delineate core areas
that are competitive with each other and constitute a generally
accepted primary competitive set of areas. Markets are building-
type specific, and are non-overlapping contiguous geographic
designations having a cumulative sum that matches the boundar-
ies of the entire Region (See also: Region). Markets can be further
subdivided into Submarkets. (See also: Submarkets)
Multi-Tenant: Buildings that house more than one tenant at a
given time. Usually, multi-tenant buildings were designed and
built to accommodate many different floor plans and designs for
different tenant needs. (See also: Tenancy).
Neighborhood Center: Provides for the sales of convenience
goods (food, drugs, etc.) and personal services (laundry, dry
cleaning, etc.) for day-to-day living needs of the immediate neigh-
borhood with a supermarket being the principal tenant. In theory,
the typical GLA is 50,000 square feet. In practice, the GLA may
range from 30,000 to 100,000 square feet.
Net Absorption: The net change in occupied space over a given
period of time. Unless otherwise noted Net Absorption includes
direct and sublease space.
New Space: Sometimes called first generation space, refers to
space that has never been occupied and/or leased by a tenant.
Occupied Space: Space that is physically occupied by a tenant.
It does not include leased space that is not currently occupied
by a tenant.
Outlet Center: Usually located in a rural or occasionally in a tour-
ist location, an Outlet Center consists of manufacturer’s outlet
stores selling their own brands at a discount. 50,000 – 500,000
SF. An Outlet Center does not have to be anchored. A strip con-
figuration is most common, although some are enclosed malls
and others can be arranged in a village cluster.
Owner: The company, entity, or individual that holds title on a
given building or property.
Planned/Proposed: The status of a building that has been
announced for future development but not yet started
construction.
Power Center: The center typically consists of several freestand-
ing (unconnected) anchors and only a minimum amount of small
specialty tenants. 250,000 – 600,000 SF. A Power Center is dom-
inated by several large anchors, including discount department
stores, off-price stores, warehouse clubs, or "category killers," i.e.,
- 5. San Diego Retail Market
D THE COSTAR RETAIL REPORT ©2013 COSTAR GROUP, INC.
SAN DIEGO – YEAR-END 2012
stores that offer tremendous selection in a particular merchandise
category at low prices.
Preleased Space: The amount of space in a building that has been
leased prior to its construction completion date, or certificate of
occupancy date.
Price/SF: Calculated by dividing the price of a building (either
sales price or asking sales price) by the Rentable Building Area
(RBA).
Quoted Rental Rate: The asking rate per square foot for a par-
ticular building or unit of space by a broker or property owner.
Quoted rental rates may differ from the actual rates paid by
tenants following the negotiation of all terms and conditions in
a specific lease.
RBA: Abbreviation for Rentable Building Area. (See also:
Rentable Building Area)
Region: Core areas containing a large population nucleus, that
together with adjacent communities have a high degree of eco-
nomic and social integration. Regions are further divided into
market areas, called Markets. (See also: Markets)
Regional Mall: Provides shopping goods, general merchandise,
apparel, and furniture, and home furnishings in full depth and
variety. It is built around the full-line department store with a
minimum GLA of 100,000 square feet, as the major drawing
power. For even greater comparative shopping, two, three, or
more department stores may be included. In theory a regional
center has a GLA of 400,000 square feet, and may range from
300,000 to more than 1,000,000 square feet. Regional centers in
excess of 750,000 square feet GLA with three or more depart-
ment stores are considered Super Regional. (See also: Super
Regional Mall).
Relet Space: Sometimes called second generation or direct space,
refers to existing space that has previously been occupied by
another tenant.
Rentable Building Area: (RBA) The total square footage of a
building that can be occupied by, or assigned to a tenant for the
purpose of determining a tenant’s rental obligation. Generally
RBA includes a percentage of common areas including all hall-
ways, main lobbies, bathrooms, and telephone closets.
Rental Rates: The annual costs of occupancy for a particular
space quoted on a per square foot basis.
Sales Price: The total dollar amount paid for a particular property
at a particular point in time.
Sales Volume: The sum of sales prices for a given group of build-
ings in a given time period.
Seller: The individual, group, company, or entity that sells a par-
ticular commercial real estate asset.
SF: Abbreviation for Square Feet.
Shopping Center: The combined retail center types of Community
Center, Neighborhood Center and Strip Center.
Single-Tenant: Buildings that are occupied, or intended to be
occupied by a single tenant. (See also: Build-to-suit and Tenancy)
Specialty Center: The combined retail center types of Airport
Retail, Outlet Center and Theme/Festival Center.
Sports & Entertainment: A facility suited for recreational activi-
ties, including: Amusement Facility, Aquatic Facility/Swimming
Pool, Bowling Alley, Casino/Gaming Facility, Equestrian Center/
Stable, Fitness, Court and Spa Facility, Golf Related, Racetrack,
Skating Rink, Ski Resort, Sports Arena/Stadium, and Theatre/
Performing Art Facility.
Strip Center: A strip center is an attached row of stores or service
outlets managed as a coherent retail entity, with on-site parking
usually located in front of the stores. Open canopies may con-
nect the storefronts, but a strip center does not have enclosed
walkways linking the stores. A strip center may be configured in
a straight line, or have an "L" or "U" shape.
Sublease Space: Space that has been leased by a tenant and is
being offered for lease back to the market by the tenant with
the lease obligation. Sublease space is sometimes referred to as
sublet space.
Submarkets: Specific geographic boundaries that serve to delin-
eate a core group of buildings that are competitive with each
other and constitute a generally accepted primary competitive
set, or peer group. Submarkets are building type specific (office,
industrial, retail, etc.), with distinct boundaries dependent on
different factors relevant to each building type. Submarkets are
non-overlapping, contiguous geographic designations having a
cumulative sum that matches the boundaries of the Market they
are located within (See also: Market).
Super Regional Mall: Similar to a regional mall, but because of its
larger size, a super regional mall has more anchors, a deeper selec-
tion of merchandise, and draws from a larger population base.
As with regional malls, the typical configuration is as an enclosed
mall, frequently with multiple levels (See also: Regional Mall).
Tenancy: A term used to indicate whether or not a building is
occupied by multiple tenants (See also: Multi-tenant) or a single
tenant. (See also: Single-tenant)
Tenant Rep: Tenant Rep stands for Tenant Representative. In a
typical lease transaction between an owner/landlord and tenant,
the broker that represents the interests of the tenant is referred to
as a Tenant Rep.
Theme/Festival Center: These centers typically employ a unify-
ing theme that is carried out by the individual shops in their
architectural design and, to an extent, in their merchandise.
Sometimes the biggest appeal of these centers is to tourists; they
can be anchored by restaurants and entertainment facilities. These
centers, generally located in urban areas, tend to be adapted from
older, sometimes historic, buildings, and can be part of mixed-use
projects. 80,000 – 250,000 SF.
Under Construction: The status of a building that is in the process
of being developed, assembled, built or constructed. A building is
considered to be under construction after it has begun construc-
tion and until it receives a certificate of occupancy.
Vacancy Rate: A measurement expressed as a percentage of the
total amount of physically vacant space divided by the total
amount of existing inventory. Under construction space generally
is not included in vacancy calculations.
Vacant Space: Space that is not currently occupied by a tenant,
regardless of any lease obligation that may be on the space.
Vacant space could be space that is either available or not avail-
able. For example, sublease space that is currently being paid for
by a tenant but not occupied by that tenant, would be considered
vacant space. Likewise, space that has been leased but not yet
occupied because of finish work being done, would also be con-
sidered vacant space.
Weighted Average Rental Rate: Rental rates that are calculated by
factoring in, or weighting, the square footage associated with each
particular rental rate. This has the effect of causing rental rates
on larger spaces to affect the average more than that of smaller
spaces. The weighted average rental rate is calculated by taking
the ratio of the square footage associated with the rental rate on
each individual available space to the square footage associated
with rental rates on all available spaces, multiplying the rental rate
by that ratio, and then adding together all the resulting numbers.
Unless specifically specified otherwise, rental rate averages include
both Direct and Sublet available spaces.
Year Built: The year in which a building completed construction
and was issued a certificate of occupancy.
YTD: Abbreviation for Year-to-Date. Describes statistics that are
cumulative from the beginning of a calendar year through what-
ever time period is being studied.
- 6. YEAR-END 2012 – SAN DIEGO
San Diego Retail Market
©2013 COSTAR GROUP, INC. THE COSTAR RETAIL REPORT 1
OVERVIEW
San Diego’s Vacancy Decreases to 4.8%
Net Absorption Positive 570,355 SF in the Quarter
T
he San Diego retail market experienced a slight improve-
ment in market conditions in the fourth quarter 2012.
The vacancy rate went from 5.0% in the previous quar-
ter to 4.8% in the current quarter. Net absorption was positive
570,355 square feet, and vacant sublease space increased by
15,940 square feet. Quoted rental rates decreased from third
quarter 2012 levels, ending at $20.84 per square foot per year.
A total of eight retail buildings with 364,290 square feet of retail
space were delivered to the market in the quarter, with 224,150
square feet still under construction at the end of the quarter.
Net Absorption
Retail net absorption was strong in San Diego fourth quar-
ter 2012, with positive 570,355 square feet absorbed in the quar-
ter. In third quarter 2012, net absorption was positive 285,477
square feet, while in second quarter 2012, absorption came in
at positive 119,640 square feet. In first quarter 2012, positive
123,181 square feet was absorbed in the market.
Tenants moving out of large blocks of space in 2012
include: Sears Essentials moving out of 94,500 square feet 7655
Clairemont Mesa Blvd; Treasures Furniture moving out of 72,002
square feet at 7480 Miramar Rd; and Ralphs moving out of
50,500 square feet at 9440 Mira Mesa Blvd.
Tenants moving into large blocks of space in 2012 include:
Walmart moving into 105,896 square feet at 1550 Leucadia Blvd;
WalMart’s Neighborhood Market moving into 82,428 square
feet at 8820 Grossmont Blvd; and 24 Hour Fitness moving into
66,851 square feet at Vista Balboa Center.
Vacancy
San Diego’s retail vacancy rate decreased in the fourth
quarter 2012, ending the quarter at 4.8%. Over the past four
quarters, the market has seen an overall decrease in the vacancy
rate, with the rate going from 5.3% in the first quarter 2012, to
5.2% at the end of the second quarter 2012, 5.0% at the end of
the third quarter 2012, to 4.8% in the current quarter.
The amount of vacant sublease space in the San Diego mar-
ket has trended down over the past four quarters. At the end of
the first quarter 2012, there were 377,377 square feet of vacant
sublease space. Currently, there are 293,343 square feet vacant
in the market.
Largest Lease Signings
The largest lease signings occurring in 2012 included: the
105,896-square-foot-lease signed by Walmart at 1550 Leucadia
Blvd; the 94,500-square-foot-deal signed by Zion Market at 7655
Clairemont Mesa Blvd; and the 75,360-square-foot-lease signed
by LA Fitness at 2355 Vista Way in Oceanside.
Rental Rates
Average quoted asking rental rates in the San Diego retail
market are down over previous quarter levels, and down from
their levels four quarters ago. Quoted rents ended the fourth
quarter 2012 at $20.84 per square foot per year. That compares
to $20.92 per square foot in the third quarter 2012, and $21.16
per square foot at the end of the first quarter 2012. This repre-
sents a 0.4% decrease in rental rates in the current quarter, and a
1.54% decrease from four quarters ago.
Vacancy Rates by Building Type 2006-2012
Source: CoStar Property®
Absorption & Deliveries Vacancy & Rent
Past 10 Quarters Past 10 Quarters
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
2006
1q
2006
2q
2006
3q
2006
4q
2007
1q
2007
2q
2007
3q
2007
4q
2008
1q
2008
2q
2008
3q
2008
4q
2009
1q
2009
2q
2009
3q
2009
4q
2010
1q
2010
2q
2010
3q
2010
4q
2011
1q
2011
2q
2011
3q
2011
4q
2012
1q
2012
2q
2012
3q
2012
4q
Power Center Specialty Center General Retail Shopping Center Mall Total Market
0.7
Net Absorption Deliveries
Average Rental Rate Vacancy Rate
- 7. 2 THE COSTAR RETAIL REPORT ©2013 COSTAR GROUP, INC.
SAN DIEGO – YEAR-END 2012
San Diego Retail Market
OVERVIEW
Inventory & Construction
During the fourth quarter 2012, eight buildings totaling
364,290 square feet were completed in the San Diego retail mar-
ket. Over the past four quarters, a total of 462,782 square feet of
retail space has been built in San Diego. In addition to the current
quarter, three buildings with 15,565 square feet were completed
in third quarter 2012, three buildings totaling 12,856 square feet
completed in second quarter 2012, and 70,071 square feet in
three buildings completed in first quarter 2012.
There were 224,150 square feet of retail space under con-
struction at the end of the fourth quarter 2012.
Some of the notable 2012 deliveries include: 4425 La Jolla
Village Dr, a 160,000-square-foot facility that delivered in fourth
quarter 2012 and is now 100% occupied, and 3951 Camino de
la Plaza, a 97,915-square-foot building that delivered in fourth
quarter 2012 and is now 85% occupied.
Total retail inventory in the San Diego market area amount-
ed to 134,772,562 square feet in 12,816 buildings and 1299
centers as of the end of the fourth quarter 2012.
Shopping Center
The Shopping Center market in San Diego currently consists
of 1247 projects with 53,768,846 square feet of retail space in
3,279 buildings. In this report the Shopping Center market is
comprised of all Community Center, Neighborhood Center, and
Strip Centers.
After absorbing 411,479 square feet and delivering 204,290
square feet in the current quarter, the Shopping Center sector saw
the vacancy rate go from 7.9% at the end of the third quarter
2012 to 7.4% this quarter.
Over the past four quarters, the Shopping Center vacancy
rate has gone from 8.1% at the end of the first quarter 2012, to
8.1% at the end of the second quarter 2012, to 7.9% at the end
of the third quarter 2012, and finally to 7.4% at the end of the
current quarter.
Rental rates ended the fourth quarter 2012 at $20.28 per
square foot, down from the $20.46 they were at the end of third
quarter 2012. Rental rates have trended down over the past year,
going from $20.67 per square foot a year ago to their current
levels.
Net absorption in the Shopping Center sector has totaled
501,993 square feet over the past four quarters. In addition to
the positive 411,479 square feet absorbed this quarter, positive
170,353 square feet was absorbed in the third quarter 2012,
negative (4,199) square feet was absorbed in the second quarter
2012, and negative (75,640) square feet was absorbed in the first
quarter 2012.
Power Centers
The Power Center average vacancy rate was 2.1% in the
fourth quarter 2012. With negative (21,926) square feet of net
absorption and no new deliveries, the vacancy rate went from
1.8% at the end of last quarter to 2.1% at the end of the fourth
quarter.
In the third quarter 2012, Power Centers absorbed positive
69,221 square feet, delivered no new space, and the vacancy rate
went from 2.6% to 1.8% over the course of the quarter. Rental
started the quarter at $28.31 per square foot and ended the quar-
ter at $28.87 per square foot.
A year ago, in fourth quarter 2011, the vacancy rate was
4.2%. Over the past four quarters, Power Centers have absorbed
a cumulative 189,533 square feet of space. Vacant sublease space
has gone from 112,656 square feet to 1,080 square feet over that
time period, and rental rates have gone from $28.83 to $29.35.
At the end of the fourth quarter 2012, there was no space
under construction in the San Diego market. The total stock
of Power Center space in San Diego currently sits at 8,853,344
square feet in 21 centers comprised of 261 buildings.
There were no power centers under construction at the end
of the fourth quarter 2012.
General Retail Properties
The General Retail sector of the market, which includes
all freestanding retail buildings, except those contained within
a center, reported a vacancy rate of 3.4% at the end of fourth
quarter 2012. There was a total of 1,867,838 square feet vacant
at that time. The General Retail sector in San Diego currently
has average rental rates of $21.47 per square foot per year. There
are 33,767 square feet of space under construction in this sector,
with no deliveries in the fourth quarter. In all, there are a total
of 9,015 buildings with 54,490,614 square feet of General Retail
space in San Diego.
Specialty Centers
There are currently 12 Specialty Centers in the San Diego
market, making up 1,654,740 square feet of retail space. In this
report the Specialty Center market is comprised of Outlet Center,
Airport Retail and Theme/Festival Centers.
006-2012
Vacancy & Rent
Past 10 Quarters
Source: CoStar Property•
09
q
2009
2q
2009
3q
2009
4q
2010
1q
2010
2q
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3q
2010
4q
2011
1q
2011
2q
2011
3q
2011
4q
2012
1q
2012
2q
2012
3q
2012
4q
General Retail Shopping Center Mall Total Market
$20
$21
$21
$22
$22
$23
2010
3q
2010
4q
2011
1q
2011
2q
2011
3q
2011
4q
2012
1q
2012
2q
2012
3q
2012
4q
PriceinDollarsperUnit
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
VacancyRatePercentage
Average Rental Rate Vacancy Rate
- 8. YEAR-END 2012 – SAN DIEGO
San Diego Retail Market
©2013 COSTAR GROUP, INC. THE COSTAR RETAIL REPORT 3
OVERVIEW
Specialty Centers in the San Diego market have experienced
negative (51,608) square feet of net absorption in 2012. The
vacancy rate currently stands at 7.6%, and rental rates average
$25.52 per square foot.
Malls
Malls recorded net absorption of positive 178,474 square
feet in the fourth quarter 2012. This net absorption number, com-
bined with the 160,000 square feet that was built in the quarter,
caused the vacancy rate to go from 2.3% a quarter ago to 2.1%
at the end of the fourth quarter 2012. Rental rates went from
$23.09 per square foot to $23.27 per square foot during that
time. In this report the Mall market is comprised of 19 Lifestyle
Center, Regional Mall and Super Regional Malls.
Sales Activity
Tallying retail building sales of 15,000 square feet or larger,
San Diego retail sales figures fell during the third quarter 2012 in
terms of dollar volume compared to the second quarter of 2012.
In the third quarter, six retail transactions closed with a total
volume of $77,400,100. The six buildings totaled 279,078 square
feet and the average price per square foot equated to $277.34
per square foot. That compares to 14 transactions totaling
$106,613,009 in the second quarter 2012. The total square foot-
age in the second quarter was 545,160 square feet for an average
price per square foot of $195.56.
Total retail center sales activity in 2012 was down compared
to 2011. In the first nine months of 2012, the market saw 27
retail sales transactions with a total volume of $220,663,109.
The price per square foot averaged $211.92. In the same first
nine months of 2011, the market posted 34 transactions with a
total volume of $418,691,190. The price per square foot averaged
$222.92.
Cap rates have been lower in 2012, averaging 6.89% com-
pared to the same period in 2011 when they averaged 7.65%.
One of the largest transactions that has occurred within
the last four quarters in the San Diego market is the sale of City
Heights Retail Village in San Diego. This 108,741 square foot
retail center sold for $35,600,000, or $327.38 per square foot.
The property sold on 11/20/2012.
Reports compiled by: Ken Baker CoStar Research Manager.
Source: CoStar Property®
Absorption & Deliveries
Past 10 Quarters
Source: CoStar Property•
0%
1%
2%
2006
1q
2006
2q
2006
3q
2006
4q
2007
1q
2007
2q
2007
3q
2007
4q
2008
1q
2008
2q
2008
3q
2008
4q
2009
1q
2009
2q
0.09
(0.15)
0.11
0.03
0.32
0.28
0.12 0.12
0.29
0.57
0.10
0.12
0.05
0.03
0.16
0.10
0.07
0.01 0.02
0.36
(0.2)
(0.1)
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
2010
3q
2010
4q
2011
1q
2011
2q
2011
3q
2011
4q
2012
1q
2012
2q
2012
3q
2012
4q
MillionsSF
Net Absorption Deliveries
- 9. 4 THE COSTAR RETAIL REPORT ©2013 COSTAR GROUP, INC.
SAN DIEGO – YEAR-END 2012
San Diego Retail Market
CoStar Submarket Clusters & Submarkets
In analyzing metropolitan areas, CoStar has developed geographic designations to help group properties together, called Markets,
Submarket Clusters and Submarkets. Markets are the equivalent of metropolitan areas, or areas containing a large population
nucleus, that together with adjacent communities have a high degree of economic and social integration. Markets are then divided
into Submarket Clusters, which are core areas within a metropolitan area that are known to be competitive with each other in terms
of attracting and keeping tenants. Markets are then further subdivided into smaller units called Submarkets, which serve to delineate
a core group of buildings that are competitive with each other and constitute a generally accepted competitive set, or peer group.
MARKETS
Submarket Clusters Submarkets
CentralSanDiegoRet CentralSanDiegoRet
Clarmnt/KM/TierrasntaRet
CoronadoRet
DowntownRet
MGorge/AGrdns/DCerRet
MidCity/SESanDiegoRet
MissionValleyRet
PacificBeach/MorenaRet
PtLoma/SportsArenaRet
EastCountyRet ElCajonRet
LaMesaRet
LakesideRet
LemonGrv/SpringVlyRet
SanteeRet
I-15CorridorRet CarmelMountainRanchRet
PowayRet
RanchoBernardoRet
RanchoPe¦asquitosRet
NorthCountyRet CarlsbadRet
EscondidoRet
OceansideRet
SanMarcosRet
VistaRet
NorthSanDiegoRet Cardiff/EncinitasRet
DelMar/SBch/RhoSFRet
LaJolla/TorreyPinesRet
Miramar/MMesa/SRnchRet
UTCRet
SouthBayRet ChulaVistaRet
EastlakeRet
ImperialBch/SouthSDRet
NationalCityRet
- 10. YEAR-END 2012 – SAN DIEGO
San Diego Retail Market
©2013 COSTAR GROUP, INC. THE COSTAR RETAIL REPORT 5
Historical Deliveries 1982 - 2012
Source: CoStar Property® * Future deliveries based on current under construction buildings.
Construction Activity Markets Ranked by Under Construction Square Footage
# Bldgs Preleased SF Preleased % All Existing U/C
North County Ret 8 155,929 76.8% 11,932 25,383
East County Ret 1 14,408 100.0% 9,581 14,408
South Bay Ret 1 0 0.0% 11,237 4,881
Central San Diego Ret 1 1,800 100.0% 8,962 1,800
I-15 Corridor Ret 0 0 0.0% 13,750 0
North San Diego Ret 0 0 0.0% 12,299 0
Totals 11 172,137 76.8% 10,516 20,377
Source: CoStar Property®
Recent Deliveries Future Deliveries
Leased & Un-Leased SF in Deliveries Since 2008 Preleased & Un-Leased SF in Properties Scheduled to Deliver
Source: CoStar Property® Source: CoStar Property®
203,061
224,150
14,408
4,881
1,800
0
0
Market
Under Construction Inventory Average Bldg Size
Total GLA
1.0
1.3
1.1
2.8
4.3
2.6 2.6 2.6
2.1
2.6
0.8
1.2
2.0
1.9
1.1
1.5
1.2
0.6
2.9
1.0
1.3
1.7
1.9
1.3
1.5 1.4
0.7
0.9
0.3 0.4
0.5
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
MillionsofSF
Deliveries Average Delivered SF
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1.0
2008 2009 2010 2011 2012
MillionsofSF
Leased Un-Leased
0
50
100
150
200
250
2013 1q 2013 2q 2013 3q
T
ThousandsofSF
Preleased Un-Leased
INVENTORY & DEVELOPMENT
- 11. 6 THE COSTAR RETAIL REPORT ©2013 COSTAR GROUP, INC.
SAN DIEGO – YEAR-END 2012
San Diego Retail Market
Historical Construction Starts & Deliveries
Square Footage Per Quarter Starting and Completing Construction
Source: CoStar Property®
Recent Deliveries by Project Size of Year-to-Date Development
Building Size # Bldgs GLA SF Leased % Leased Avg Rate Single-Tenant Multi-Tenant
< 50,000 SF 14 147,867 76,764 51.9% $28.61 87,457 60,410
50,000 SF - 99,999 SF 2 154,915 140,228 90.5% $33.00 97,915 57,000
100,000 SF - 249,999 SF 1 160,000 160,000 100.0% $0.00 160,000 0
250,000 SF - 499,999 SF 0 0 0 0.0% $0.00 0 0
>= 500,000 SF 0 0 0 0.0% $0.00 0 0
Source: CoStar Property®
Recent Development by Tenancy Existing Inventory Comparison
Based on GLA Developed for Single & Multi Tenant Use Based on Total GLA
2012 Deliveries
Source: CoStar Property® Source: CoStar Property®
Currently Under Construction
0.12
0.09
0.05
0.07
0.11
0.00
0.03
0.19
0.08
0.16
0.01 0.01
0.30
0.01 0.02
0.19
0.13
0.27
0.05
0.44
0.07
0.04
0.10
0.12
0.05
0.03
0.16
0.10
0.07
0.01 0.02
0.36
0.0
0.1
0.1
0.2
0.2
0.3
0.3
0.4
0.4
0.5
0.5
2009 1q 2009 2q 2009 3q 2009 4q 2010 1q 2010 2q 2010 3q 2010 4q 2011 1q 2011 2q 2011 3q 2011 4q 2012 1q 2012 2q 2012 3q 2012 4q
MillionsofSF
Construction Starts Deliveries
7%
93%
Multi Single
75%
25%
Multi Single 0 10 20 30 40 50 60
Specialty Center
Power Center
Mall
Shopping Center
General Retail
Millions of Square Feet
INVENTORY & DEVELOPMENT
- 12. YEAR-END 2012 – SAN DIEGO
San Diego Retail Market
©2013 COSTAR GROUP, INC. THE COSTAR RETAIL REPORT 7
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- 13. 8 THE COSTAR RETAIL REPORT ©2013 COSTAR GROUP, INC.
SAN DIEGO – YEAR-END 2012
San Diego Retail Market
INVENTORY & DEVELOPMENT
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- 14. YEAR-END 2012 – SAN DIEGO
San Diego Retail Market
©2013 COSTAR GROUP, INC. THE COSTAR RETAIL REPORT 9
General Retail Market Statistics Year-End 2012
YTD Net YTD Under Quoted
Market # Blds Total GLA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates
Central San Diego Ret 3,727 21,625,833 691,216 769,670 3.6% 136,696 76,571 1,800 $24.38
East County Ret 1,455 7,507,906 167,763 167,763 2.2% 95,298 0 14,408 $14.39
I-15 Corridor Ret 177 1,730,725 11,492 11,492 0.7% 18,929 0 0 $23.35
North County Ret 1,694 11,106,929 425,244 436,790 3.9% (25,498) 0 17,559 $14.53
North San Diego Ret 861 6,744,020 202,106 202,541 3.0% (21,353) 0 0 $34.61
South Bay Ret 1,101 5,775,201 273,852 279,582 4.8% 24,646 3,856 0 $19.33
Totals 9,015 54,490,614 1,771,673 1,867,838 3.4% 228,718 80,427 33,767 $21.47
Source: CoStar Property®
Mall Market Statistics Year-End 2012
YTD Net YTD Under Quoted
Market # Ctrs Total GLA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates
Central San Diego Ret 3 4,276,289 606 606 0.0% (606) 0 0 $0.00
East County Ret 3 2,892,867 66,100 66,100 2.3% 25,931 0 0 $23.96
I-15 Corridor Ret 0 0 0 0 0.0% 0 0 0 $0.00
North County Ret 6 4,060,751 188,837 188,837 4.7% 4,681 0 0 $23.98
North San Diego Ret 4 2,128,869 36,512 45,712 2.1% 184,397 160,000 0 $18.00
South Bay Ret 3 2,646,242 42,505 42,505 1.6% 15,614 0 0 $0.00
Totals 19 16,005,018 334,560 343,760 2.1% 230,017 160,000 0 $23.27
Source: CoStar Property®
Power Center Market Statistics Year-End 2012
YTD Net YTD Under Quoted
Market # Ctrs Total GLA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates
Central San Diego Ret 8 3,493,583 73,845 74,925 2.1% 14,944 0 0 $28.28
East County Ret 3 1,104,940 6,457 6,457 0.6% 17,239 0 0 $36.00
I-15 Corridor Ret 1 546,253 48,283 48,283 8.8% 41,356 0 0 $0.00
North County Ret 4 1,561,894 43,350 43,350 2.8% 120,738 0 0 $30.73
North San Diego Ret 3 1,170,856 10,467 10,467 0.9% (4,744) 0 0 $0.00
South Bay Ret 2 975,818 1,996 1,996 0.2% 0 0 0 $21.00
Totals 21 8,853,344 184,398 185,478 2.1% 189,533 0 0 $29.35
Source: CoStar Property®
Shopping Center Market Statistics Year-End 2012
YTD Net YTD Under Quoted
Market # Ctrs Total GLA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates
Central San Diego Ret 370 10,902,154 710,055 719,496 6.6% 108,979 85,830 0 $21.61
East County Ret 240 8,195,331 574,684 587,866 7.2% 144,458 5,000 0 $16.88
I-15 Corridor Ret 61 4,130,470 262,856 272,275 6.6% 2,044 0 0 $25.53
North County Ret 281 15,178,022 1,256,758 1,351,339 8.9% 195,003 6,975 185,502 $19.11
North San Diego Ret 114 6,462,971 389,960 414,939 6.4% (25,992) 3,590 0 $22.90
South Bay Ret 181 8,899,898 628,739 654,358 7.4% 77,501 120,960 4,881 $20.49
Totals 1,247 53,768,846 3,823,052 4,000,273 7.4% 501,993 222,355 190,383 $20.28
Source: CoStar Property®
Vacancy
Existing Inventory Vacancy
Existing Inventory Vacancy
Existing Inventory
Existing Inventory Vacancy
FIGURES AT A GLANCE
- 15. 10 THE COSTAR RETAIL REPORT ©2013 COSTAR GROUP, INC.
SAN DIEGO – YEAR-END 2012
San Diego Retail Market
Specialty Center Market Statistics Year-End 2012
YTD Net YTD Under Quoted
Market # Ctrs Total GLA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates
Central San Diego Ret 5 345,552 3,653 11,214 3.2% 1,246 0 0 $27.45
East County Ret 1 82,792 0 0 0.0% 0 0 0 $0.00
I-15 Corridor Ret 0 0 0 0 0.0% 0 0 0 $0.00
North County Ret 2 367,815 1,210 1,210 0.3% 1,065 0 0 $0.00
North San Diego Ret 2 232,667 107,350 107,350 46.1% (50,735) 0 0 $15.00
South Bay Ret 2 625,914 4,683 6,799 1.1% (3,184) 0 0 $20.96
Totals 12 1,654,740 116,896 126,573 7.6% (51,608) 0 0 $25.52
Source: CoStar Property®
Total Retail Market Statistics Year-End 2012
YTD Net YTD Under Quoted
Market # Blds Total GLA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates
Central San Diego Ret 4,535 40,643,411 1,479,375 1,575,911 3.9% 261,259 162,401 1,800 $23.23
East County Ret 2,065 19,783,836 815,004 828,186 4.2% 282,926 5,000 14,408 $16.74
I-15 Corridor Ret 466 6,407,448 322,631 332,050 5.2% 62,329 0 0 $25.31
North County Ret 2,705 32,275,411 1,915,399 2,021,526 6.3% 295,989 6,975 203,061 $18.42
North San Diego Ret 1,361 16,739,383 746,395 781,009 4.7% 81,573 163,590 0 $26.54
South Bay Ret 1,684 18,923,073 951,775 985,240 5.2% 114,577 124,816 4,881 $20.26
Totals 12,816 134,772,562 6,230,579 6,523,922 4.8% 1,098,653 462,782 224,150 $20.84
Source: CoStar Property®
VacancyExisting Inventory
Existing Inventory Vacancy
FIGURES AT A GLANCE
- 16. YEAR-END 2012 – SAN DIEGO
San Diego Retail Market
©2013 COSTAR GROUP, INC. THE COSTAR RETAIL REPORT 11
FIGURES AT A GLANCE
General Retail Submarket Statistics Year-End 2012
YTD Net YTD Under Quoted
Market # Blds Total GLA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates
Cardiff/Encinitas Ret 304 3,157,792 18,604 18,604 0.6% 3,099 0 0 $30.97
Carlsbad Ret 203 1,570,566 10,657 10,657 0.7% 8,429 0 9,777 $22.30
Carmel Mountain Ranch Re 34 250,033 1,121 1,121 0.4% 454 0 0 $26.06
Central San Diego Ret 1,000 4,242,803 116,446 116,446 2.7% 74,928 63,500 0 $25.33
Chula Vista Ret 501 2,770,974 122,620 128,350 4.6% 39,025 3,856 0 $17.15
Clarmnt/KM/Tierrasnta Ret 239 2,231,351 29,280 61,059 2.7% (23,834) 0 0 $17.23
Coronado Ret 78 436,979 19,742 19,742 4.5% 10,859 0 0 $33.82
Del Mar/S Bch/Rho SF Ret 195 970,596 17,533 17,533 1.8% 355 0 0 $33.45
Downtown Ret 495 5,215,816 265,813 273,990 5.3% 34,212 4,271 0 $29.46
Eastlake Ret 6 120,944 0 0 0.0% 0 0 0 $0.00
El Cajon Ret 587 3,428,535 62,271 62,271 1.8% 92,763 0 14,408 $14.50
Escondido Ret 583 3,932,543 172,247 172,247 4.4% (11,487) 0 0 $13.84
Imperial Bch/South SD Ret 285 1,029,261 41,090 41,090 4.0% (5,361) 0 0 $25.32
La Jolla/Torrey Pines Ret 253 1,570,391 102,829 103,264 6.6% (941) 0 0 $43.22
La Mesa Ret 363 1,881,963 20,229 20,229 1.1% 22,786 0 0 $13.39
Lakeside Ret 106 366,493 8,100 8,100 2.2% 3,004 0 0 $16.86
Lemon Grv/Spring Vly Ret 298 1,147,943 58,389 58,389 5.1% (16,209) 0 0 $12.71
M Gorge/A Grdns/D Cer Re 53 435,856 25,772 25,772 5.9% (13,534) 0 0 $18.36
Mid City/SE San Diego Ret 1,001 3,900,739 81,750 82,775 2.1% 92,311 8,800 1,800 $16.32
Miramar/M Mesa/S Rnch R 96 869,817 63,140 63,140 7.3% (23,866) 0 0 $18.13
Mission Valley Ret 46 691,402 2,571 30,044 4.3% (27,473) 0 0 $16.54
National City Ret 309 1,854,022 110,142 110,142 5.9% (9,018) 0 0 $16.32
Oceanside Ret 416 2,338,452 127,919 129,865 5.6% (29,132) 0 0 $17.41
Pacific Beach/Morena Ret 423 2,263,538 99,675 99,675 4.4% 10,656 0 0 $32.34
Poway Ret 113 1,168,177 8,046 8,046 0.7% 18,590 0 0 $18.80
Pt Loma/Sports Arena Ret 392 2,207,349 50,167 60,167 2.7% (21,429) 0 0 $25.53
Rancho Bernardo Ret 7 125,830 0 0 0.0% 0 0 0 $0.00
Rancho Pe¦asquitos Ret 23 186,685 2,325 2,325 1.2% (115) 0 0 $25.80
San Marcos Ret 120 1,209,604 56,239 65,839 5.4% 11,819 0 7,782 $14.03
Santee Ret 101 682,972 18,774 18,774 2.7% (7,046) 0 0 $16.81
UTC Ret 13 175,424 0 0 0.0% 0 0 0 $0.00
Vista Ret 372 2,055,764 58,182 58,182 2.8% (5,127) 0 0 $12.04
Totals 9,015 54,490,614 1,771,673 1,867,838 3.4% 228,718 80,427 33,767 $21.47
Source: CoStar Property®
Existing Inventory Vacancy
- 17. 12 THE COSTAR RETAIL REPORT ©2013 COSTAR GROUP, INC.
SAN DIEGO – YEAR-END 2012
San Diego Retail Market
FIGURES AT A GLANCE
Mall Submarket Statistics Year-End 2012
YTD Net YTD Under Quoted
Market # Ctrs Total GLA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates
Cardiff/Encinitas Ret 1 498,370 17,412 26,612 5.3% 27,500 0 0 $18.00
Carlsbad Ret 2 1,549,783 5,762 5,762 0.4% (5,762) 0 0 $30.00
Carmel Mountain Ranch Re 0 0 0 0 0.0% 0 0 0 $0.00
Central San Diego Ret 0 0 0 0 0.0% 0 0 0 $0.00
Chula Vista Ret 2 1,934,557 3,200 3,200 0.2% 23,000 0 0 $0.00
Clarmnt/KM/Tierrasnta Ret 0 0 0 0 0.0% 0 0 0 $0.00
Coronado Ret 0 0 0 0 0.0% 0 0 0 $0.00
Del Mar/S Bch/Rho SF Ret 1 74,631 8,202 8,202 11.0% (3,195) 0 0 $0.00
Downtown Ret 1 875,400 0 0 0.0% 0 0 0 $0.00
Eastlake Ret 1 711,685 39,305 39,305 5.5% (7,386) 0 0 $0.00
El Cajon Ret 1 1,318,458 21,321 21,321 1.6% 23,016 0 0 $21.67
Escondido Ret 1 1,334,674 75,000 75,000 5.6% 12,440 0 0 $0.00
Imperial Bch/South SD Ret 0 0 0 0 0.0% 0 0 0 $0.00
La Jolla/Torrey Pines Ret 1 416,334 10,898 10,898 2.6% 92 0 0 $0.00
La Mesa Ret 1 924,717 6,879 6,879 0.7% 2,815 0 0 $0.00
Lakeside Ret 0 0 0 0 0.0% 0 0 0 $0.00
Lemon Grv/Spring Vly Ret 0 0 0 0 0.0% 0 0 0 $0.00
M Gorge/A Grdns/D Cer Re 0 0 0 0 0.0% 0 0 0 $0.00
Mid City/SE San Diego Ret 0 0 0 0 0.0% 0 0 0 $0.00
Miramar/M Mesa/S Rnch R 0 0 0 0 0.0% 0 0 0 $0.00
Mission Valley Ret 2 3,400,889 606 606 0.0% (606) 0 0 $0.00
National City Ret 0 0 0 0 0.0% 0 0 0 $0.00
Oceanside Ret 3 1,176,294 108,075 108,075 9.2% (1,997) 0 0 $22.82
Pacific Beach/Morena Ret 0 0 0 0 0.0% 0 0 0 $0.00
Poway Ret 0 0 0 0 0.0% 0 0 0 $0.00
Pt Loma/Sports Arena Ret 0 0 0 0 0.0% 0 0 0 $0.00
Rancho Bernardo Ret 0 0 0 0 0.0% 0 0 0 $0.00
Rancho Pe¦asquitos Ret 0 0 0 0 0.0% 0 0 0 $0.00
San Marcos Ret 0 0 0 0 0.0% 0 0 0 $0.00
Santee Ret 1 649,692 37,900 37,900 5.8% 100 0 0 $30.33
UTC Ret 1 1,139,534 0 0 0.0% 160,000 160,000 0 $0.00
Vista Ret 0 0 0 0 0.0% 0 0 0 $0.00
Totals 19 16,005,018 334,560 343,760 2.1% 230,017 160,000 0 $23.27
Source: CoStar Property®
Existing Inventory Vacancy
- 18. YEAR-END 2012 – SAN DIEGO
San Diego Retail Market
©2013 COSTAR GROUP, INC. THE COSTAR RETAIL REPORT 13
FIGURES AT A GLANCE
Power Center Submarket Statistics Year-End 2012
YTD Net YTD Under Quoted
Market # Ctrs Total GLA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates
Cardiff/Encinitas Ret 0 0 0 0 0.0% 0 0 0 $0.00
Carlsbad Ret 1 177,995 0 0 0.0% 105,896 0 0 $0.00
Carmel Mountain Ranch Re 1 546,253 48,283 48,283 8.8% 41,356 0 0 $0.00
Central San Diego Ret 0 0 0 0 0.0% 0 0 0 $0.00
Chula Vista Ret 1 509,949 1,996 1,996 0.4% 0 0 0 $21.00
Clarmnt/KM/Tierrasnta Ret 3 1,424,293 52,366 52,366 3.7% 388 0 0 $25.50
Coronado Ret 0 0 0 0 0.0% 0 0 0 $0.00
Del Mar/S Bch/Rho SF Ret 1 269,606 3,702 3,702 1.4% 146 0 0 $0.00
Downtown Ret 0 0 0 0 0.0% 0 0 0 $0.00
Eastlake Ret 0 0 0 0 0.0% 0 0 0 $0.00
El Cajon Ret 1 432,102 1,300 1,300 0.3% 10,479 0 0 $0.00
Escondido Ret 1 407,092 2,577 2,577 0.6% 9,415 0 0 $30.00
Imperial Bch/South SD Ret 1 465,869 0 0 0.0% 0 0 0 $0.00
La Jolla/Torrey Pines Ret 0 0 0 0 0.0% 0 0 0 $0.00
La Mesa Ret 1 234,753 0 0 0.0% 0 0 0 $0.00
Lakeside Ret 0 0 0 0 0.0% 0 0 0 $0.00
Lemon Grv/Spring Vly Ret 0 0 0 0 0.0% 0 0 0 $0.00
M Gorge/A Grdns/D Cer Re 0 0 0 0 0.0% 0 0 0 $0.00
Mid City/SE San Diego Ret 1 571,450 7,079 7,079 1.2% 5,036 0 0 $0.00
Miramar/M Mesa/S Rnch R 2 901,250 6,765 6,765 0.8% (4,890) 0 0 $0.00
Mission Valley Ret 3 1,044,439 13,200 14,280 1.4% 10,720 0 0 $42.00
National City Ret 0 0 0 0 0.0% 0 0 0 $0.00
Oceanside Ret 0 0 0 0 0.0% 0 0 0 $0.00
Pacific Beach/Morena Ret 0 0 0 0 0.0% 0 0 0 $0.00
Poway Ret 0 0 0 0 0.0% 0 0 0 $0.00
Pt Loma/Sports Arena Ret 1 453,401 1,200 1,200 0.3% (1,200) 0 0 $0.00
Rancho Bernardo Ret 0 0 0 0 0.0% 0 0 0 $0.00
Rancho Pe¦asquitos Ret 0 0 0 0 0.0% 0 0 0 $0.00
San Marcos Ret 1 357,701 10,933 10,933 3.1% 8,292 0 0 $31.80
Santee Ret 1 438,085 5,157 5,157 1.2% 6,760 0 0 $36.00
UTC Ret 0 0 0 0 0.0% 0 0 0 $0.00
Vista Ret 1 619,106 29,840 29,840 4.8% (2,865) 0 0 $30.00
Totals 21 8,853,344 184,398 185,478 2.1% 189,533 0 0 $29.35
Source: CoStar Property®
Existing Inventory Vacancy
- 19. 14 THE COSTAR RETAIL REPORT ©2013 COSTAR GROUP, INC.
SAN DIEGO – YEAR-END 2012
San Diego Retail Market
FIGURES AT A GLANCE
Shopping Center Submarket Statistics Year-End 2012
YTD Net YTD Under Quoted
Market # Ctrs Total GLA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates
Cardiff/Encinitas Ret 35 1,711,650 85,719 103,871 6.1% 12,222 3,590 0 $30.66
Carlsbad Ret 26 1,669,641 120,298 152,174 9.1% 11,337 0 185,502 $26.50
Carmel Mountain Ranch Re 22 1,451,291 70,153 75,739 5.2% 16,100 0 0 $27.54
Central San Diego Ret 52 682,561 21,863 21,863 3.2% 7,577 0 0 $26.12
Chula Vista Ret 85 3,778,285 152,716 152,716 4.0% 24,180 0 4,881 $22.18
Clarmnt/KM/Tierrasnta Ret 86 3,429,107 283,316 286,556 8.4% (25,236) 0 0 $20.02
Coronado Ret 5 140,782 1,560 1,560 1.1% (1,560) 0 0 $0.00
Del Mar/S Bch/Rho SF Ret 17 1,484,995 42,763 42,763 2.9% (2,590) 0 0 $37.56
Downtown Ret 3 106,959 49,939 49,939 46.7% 37,501 85,830 0 $26.79
Eastlake Ret 8 1,637,138 82,257 106,090 6.5% 12,020 2,500 0 $19.74
El Cajon Ret 93 3,330,178 295,094 296,106 8.9% 3,431 0 0 $16.47
Escondido Ret 83 4,221,966 364,962 386,582 9.2% 20,355 0 0 $19.90
Imperial Bch/South SD Ret 55 1,980,001 269,932 270,818 13.7% 40,539 109,250 0 $22.41
La Jolla/Torrey Pines Ret 17 385,992 25,298 25,298 6.6% (10,262) 0 0 $36.00
La Mesa Ret 63 2,206,898 112,796 120,196 5.4% 119,251 0 0 $14.02
Lakeside Ret 17 270,394 28,229 28,229 10.4% 5,182 0 0 $24.18
Lemon Grv/Spring Vly Ret 40 1,444,109 56,651 61,421 4.3% 28,321 5,000 0 $19.31
M Gorge/A Grdns/D Cer Re 17 600,840 28,886 35,087 5.8% (12,061) 0 0 $19.72
Mid City/SE San Diego Ret 124 2,840,425 165,964 165,964 5.8% (206) 0 0 $17.24
Miramar/M Mesa/S Rnch R 40 2,324,806 216,426 223,253 9.6% (21,023) 0 0 $18.50
Mission Valley Ret 7 504,368 1,360 1,360 0.3% 42,459 0 0 $18.00
National City Ret 33 1,504,474 123,834 124,734 8.3% 762 9,210 0 $17.42
Oceanside Ret 59 3,869,843 302,730 307,730 8.0% 96,193 0 0 $18.43
Pacific Beach/Morena Ret 31 884,974 23,927 23,927 2.7% 20,378 0 0 $27.88
Poway Ret 27 1,640,049 142,920 142,920 8.7% (16,899) 0 0 $23.69
Pt Loma/Sports Arena Ret 45 1,712,138 133,240 133,240 7.8% 40,127 0 0 $24.37
Rancho Bernardo Ret 5 426,485 23,801 27,634 6.5% 5,741 0 0 $24.70
Rancho Pe¦asquitos Ret 7 612,645 25,982 25,982 4.2% (2,898) 0 0 $39.00
San Marcos Ret 50 2,886,980 215,968 225,444 7.8% 53,539 6,975 0 $19.09
Santee Ret 27 943,752 81,914 81,914 8.7% (11,727) 0 0 $18.06
UTC Ret 5 555,528 19,754 19,754 3.6% (4,339) 0 0 $27.91
Vista Ret 63 2,529,592 252,800 279,409 11.0% 13,579 0 0 $17.22
Totals 1,247 53,768,846 3,823,052 4,000,273 7.4% 501,993 222,355 190,383 $20.28
Source: CoStar Property®
Existing Inventory Vacancy
- 20. YEAR-END 2012 – SAN DIEGO
San Diego Retail Market
©2013 COSTAR GROUP, INC. THE COSTAR RETAIL REPORT 15
FIGURES AT A GLANCE
Specialty Center Submarket Statistics Year-End 2012
YTD Net YTD Under Quoted
Market # Ctrs Total GLA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates
Cardiff/Encinitas Ret 1 44,099 0 0 0.0% 0 0 0 $0.00
Carlsbad Ret 1 287,931 0 0 0.0% 0 0 0 $0.00
Carmel Mountain Ranch Re 0 0 0 0 0.0% 0 0 0 $0.00
Central San Diego Ret 1 40,000 0 0 0.0% 0 0 0 $0.00
Chula Vista Ret 1 92,582 3,184 3,184 3.4% (3,184) 0 0 $20.96
Clarmnt/KM/Tierrasnta Ret 0 0 0 0 0.0% 0 0 0 $0.00
Coronado Ret 1 39,603 0 0 0.0% 0 0 0 $0.00
Del Mar/S Bch/Rho SF Ret 0 0 0 0 0.0% 0 0 0 $0.00
Downtown Ret 1 101,634 1,140 1,140 1.1% 0 0 0 $0.00
Eastlake Ret 0 0 0 0 0.0% 0 0 0 $0.00
El Cajon Ret 1 82,792 0 0 0.0% 0 0 0 $0.00
Escondido Ret 0 0 0 0 0.0% 0 0 0 $0.00
Imperial Bch/South SD Ret 1 533,332 1,499 3,615 0.7% 0 0 0 $0.00
La Jolla/Torrey Pines Ret 0 0 0 0 0.0% 0 0 0 $0.00
La Mesa Ret 0 0 0 0 0.0% 0 0 0 $0.00
Lakeside Ret 0 0 0 0 0.0% 0 0 0 $0.00
Lemon Grv/Spring Vly Ret 0 0 0 0 0.0% 0 0 0 $0.00
M Gorge/A Grdns/D Cer Re 0 0 0 0 0.0% 0 0 0 $0.00
Mid City/SE San Diego Ret 0 0 0 0 0.0% 0 0 0 $0.00
Miramar/M Mesa/S Rnch R 1 188,568 107,350 107,350 56.9% (50,735) 0 0 $15.00
Mission Valley Ret 1 146,666 2,513 10,074 6.9% 1,246 0 0 $27.45
National City Ret 0 0 0 0 0.0% 0 0 0 $0.00
Oceanside Ret 1 79,884 1,210 1,210 1.5% 1,065 0 0 $0.00
Pacific Beach/Morena Ret 0 0 0 0 0.0% 0 0 0 $0.00
Poway Ret 0 0 0 0 0.0% 0 0 0 $0.00
Pt Loma/Sports Arena Ret 1 17,649 0 0 0.0% 0 0 0 $0.00
Rancho Bernardo Ret 0 0 0 0 0.0% 0 0 0 $0.00
Rancho Pe¦asquitos Ret 0 0 0 0 0.0% 0 0 0 $0.00
San Marcos Ret 0 0 0 0 0.0% 0 0 0 $0.00
Santee Ret 0 0 0 0 0.0% 0 0 0 $0.00
UTC Ret 0 0 0 0 0.0% 0 0 0 $0.00
Vista Ret 0 0 0 0 0.0% 0 0 0 $0.00
Totals 12 1,654,740 116,896 126,573 7.6% (51,608) 0 0 $25.52
Source: CoStar Property®
Existing Inventory Vacancy
- 21. 16 THE COSTAR RETAIL REPORT ©2013 COSTAR GROUP, INC.
SAN DIEGO – YEAR-END 2012
San Diego Retail Market
FIGURES AT A GLANCE
Total Retail Submarket Statistics Year-End 2012
YTD Net YTD Under Quoted
Market # Blds Total GLA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates
Cardiff/Encinitas Ret 429 5,411,911 121,735 149,087 2.8% 42,821 3,590 0 $29.51
Carlsbad Ret 344 5,255,916 136,717 168,593 3.2% 119,900 0 195,279 $25.69
Carmel Mountain Ranch Re 141 2,247,577 119,557 125,143 5.6% 57,910 0 0 $27.37
Central San Diego Ret 1,069 4,965,364 138,309 138,309 2.8% 82,505 63,500 0 $25.47
Chula Vista Ret 725 9,086,347 283,716 289,446 3.2% 83,021 3,856 4,881 $20.42
Clarmnt/KM/Tierrasnta Ret 481 7,084,751 364,962 399,981 5.6% (48,682) 0 0 $19.76
Coronado Ret 86 617,364 21,302 21,302 3.5% 9,299 0 0 $33.82
Del Mar/S Bch/Rho SF Ret 299 2,799,828 72,200 72,200 2.6% (5,284) 0 0 $35.92
Downtown Ret 508 6,299,809 316,892 325,069 5.2% 71,713 90,101 0 $28.80
Eastlake Ret 98 2,469,767 121,562 145,395 5.9% 4,634 2,500 0 $19.74
El Cajon Ret 838 8,592,065 379,986 380,998 4.4% 129,689 0 14,408 $16.31
Escondido Ret 839 9,896,275 614,786 636,406 6.4% 30,723 0 0 $18.26
Imperial Bch/South SD Ret 455 4,008,463 312,521 315,523 7.9% 35,178 109,250 0 $23.04
La Jolla/Torrey Pines Ret 285 2,372,717 139,025 139,460 5.9% (11,111) 0 0 $42.35
La Mesa Ret 504 5,248,331 139,904 147,304 2.8% 144,852 0 0 $13.96
Lakeside Ret 133 636,887 36,329 36,329 5.7% 8,186 0 0 $22.11
Lemon Grv/Spring Vly Ret 383 2,592,052 115,040 119,810 4.6% 12,112 5,000 0 $17.37
M Gorge/A Grdns/D Cer Re 90 1,036,696 54,658 60,859 5.9% (25,595) 0 0 $19.20
Mid City/SE San Diego Ret 1,229 7,312,614 254,793 255,818 3.5% 97,141 8,800 1,800 $16.88
Miramar/M Mesa/S Rnch R 286 4,284,441 393,681 400,508 9.3% (100,514) 0 0 $18.39
Mission Valley Ret 104 5,787,764 20,250 56,364 1.0% 26,346 0 0 $22.57
National City Ret 406 3,358,496 233,976 234,876 7.0% (8,256) 9,210 0 $17.32
Oceanside Ret 681 7,464,473 539,934 546,880 7.3% 66,129 0 0 $18.66
Pacific Beach/Morena Ret 462 3,148,512 123,602 123,602 3.9% 31,034 0 0 $31.31
Poway Ret 222 2,808,226 150,966 150,966 5.4% 1,691 0 0 $23.33
Pt Loma/Sports Arena Ret 506 4,390,537 184,607 194,607 4.4% 17,498 0 0 $24.61
Rancho Bernardo Ret 37 552,315 23,801 27,634 5.0% 5,741 0 0 $24.70
Rancho Pe¦asquitos Ret 66 799,330 28,307 28,307 3.5% (3,013) 0 0 $30.04
San Marcos Ret 297 4,454,285 283,140 302,216 6.8% 73,650 6,975 7,782 $18.13
Santee Ret 207 2,714,501 143,745 143,745 5.3% (11,913) 0 0 $20.23
UTC Ret 62 1,870,486 19,754 19,754 1.1% 155,661 160,000 0 $27.91
Vista Ret 544 5,204,462 340,822 367,431 7.1% 5,587 0 0 $16.44
Totals 12,816 134,772,562 6,230,579 6,523,922 4.8% 1,098,653 462,782 224,150 $20.84
Source: CoStar Property®
Existing Inventory Vacancy
- 22. YEAR-END 2012 – SAN DIEGO
San Diego Retail Market
©2013 COSTAR GROUP, INC. THE COSTAR RETAIL REPORT 17
FIGURES AT A GLANCE
General Retail Market Statistics Year-End 2012
Net Quoted
Period # Blds Total GLA Direct SF Total SF Vac % Absorption # Blds Total GLA # Blds Total GLA Rates
2012 4q 9,015 54,490,614 1,771,673 1,867,838 3.4% 9,549 0 0 4 33,767 $21.47
2012 3q 9,016 54,495,614 1,825,576 1,882,387 3.5% 59,076 0 0 4 33,767 $21.29
2012 2q 9,016 54,495,614 1,868,516 1,941,463 3.6% 6,071 2 10,356 3 23,990 $20.60
2012 1q 9,016 54,491,992 1,899,993 1,943,912 3.6% 154,022 3 70,071 4 26,564 $21.43
2011 4q 9,014 54,423,999 1,981,411 2,029,941 3.7% 13,185 3 36,932 4 73,927 $21.84
2011 3q 9,015 54,542,807 2,114,054 2,161,934 4.0% 138,463 2 162,160 6 107,003 $22.09
2011 2q 9,016 54,401,629 2,123,507 2,159,219 4.0% (83,633) 2 28,118 7 260,526 $22.72
2011 1q 9,015 54,377,888 2,015,231 2,051,845 3.8% 98,668 3 17,057 5 211,593 $22.40
2010 4q 9,016 54,490,541 2,188,783 2,263,166 4.2% (29,806) 3 57,379 7 214,990 $22.56
2010 3q 9,014 54,482,308 2,128,973 2,225,127 4.1% (10,832) 1 17,000 6 88,935 $22.81
2010 2q 9,015 54,472,169 2,113,713 2,204,156 4.0% 80,393 2 6,290 5 95,694 $22.70
2010 1q 9,019 54,493,263 2,091,263 2,305,643 4.2% (30,871) 3 51,080 6 97,984 $23.27
2009 9,023 54,464,742 2,043,567 2,246,251 4.1% 119,038 27 645,240 8 132,064 $24.12
2008 9,005 53,860,414 1,693,866 1,760,961 3.3% (11,654) 32 325,284 20 646,130 $24.95
2007 8,989 53,621,107 1,424,268 1,510,000 2.8% 677,171 21 311,456 21 175,820 $26.50
2006 8,987 53,778,432 2,323,807 2,344,496 4.4% (299,094) 20 207,351 18 167,328 $26.60
Source: CoStar Property®
Mall Market Statistics Year-End 2012
Net Quoted
Period # Ctrs Total GLA Direct SF Total SF Vac % Absorption # Blds Total GLA # Blds Total GLA Rates
2012 4q 19 16,005,018 334,560 343,760 2.1% 178,474 1 160,000 0 0 $23.27
2012 3q 19 15,845,018 353,034 362,234 2.3% 27,628 0 0 1 160,000 $23.09
2012 2q 19 15,845,018 380,662 389,862 2.5% 8,449 0 0 1 160,000 $23.23
2012 1q 19 15,845,018 389,111 398,311 2.5% 15,466 0 0 1 160,000 $24.62
2011 4q 19 15,845,018 404,577 413,777 2.6% 41,811 0 0 0 0 $24.35
2011 3q 19 15,845,018 446,388 455,588 2.9% 72,875 0 0 0 0 $24.35
2011 2q 19 15,845,018 519,263 528,463 3.3% 9,633 0 0 0 0 $25.22
2011 1q 19 15,845,018 528,896 538,096 3.4% 38,769 0 0 0 0 $21.17
2010 4q 19 15,845,018 567,665 576,865 3.6% (12,859) 0 0 0 0 $20.49
2010 3q 19 15,845,018 558,106 564,006 3.6% (72,315) 0 0 0 0 $19.79
2010 2q 19 15,845,018 485,791 491,691 3.1% 15,089 0 0 0 0 $20.60
2010 1q 19 15,845,018 500,880 506,780 3.2% 126,495 1 8,500 0 0 $19.51
2009 19 15,836,518 624,775 624,775 3.9% (322,363) 0 0 1 8,500 $19.97
2008 19 15,836,518 236,632 302,412 1.9% (70,847) 0 0 0 0 $31.03
2007 19 15,836,518 227,522 231,565 1.5% 277,907 2 170,800 0 0 $24.99
2006 19 15,665,718 319,080 338,672 2.2% 360,757 29 578,885 1 135,800 $26.47
Source: CoStar Property®
Power Center Market Statistics Year-End 2012
Net Quoted
Period # Ctrs Total GLA Direct SF Total SF Vac % Absorption # Blds Total GLA # Blds Total GLA Rates
2012 4q 21 8,853,344 184,398 185,478 2.1% (21,926) 0 0 0 0 $29.35
2012 3q 21 8,853,344 155,712 163,552 1.8% 69,221 0 0 0 0 $28.87
2012 2q 21 8,853,344 224,933 232,773 2.6% 110,188 0 0 0 0 $28.31
2012 1q 21 8,853,344 230,305 342,961 3.9% 32,050 0 0 0 0 $28.92
2011 4q 21 8,853,344 262,355 375,011 4.2% 115,470 1 57,531 0 0 $28.83
2011 3q 21 8,795,813 327,054 432,950 4.9% (12,707) 0 0 1 57,531 $28.16
2011 2q 21 8,795,813 314,347 420,243 4.8% 179,845 0 0 1 57,531 $27.93
2011 1q 21 8,795,813 494,192 600,088 6.8% (30,945) 0 0 1 57,531 $29.24
2010 4q 21 8,795,813 463,247 569,143 6.5% 5,150 1 4,000 0 0 $29.81
2010 3q 21 8,791,813 464,397 570,293 6.5% 98,535 1 55,000 1 4,000 $27.74
2010 2q 21 8,736,813 507,932 613,828 7.0% (18,390) 1 9,440 2 59,000 $27.87
2010 1q 21 8,727,373 480,102 585,998 6.7% (1,227) 0 0 3 68,440 $27.42
2009 21 8,727,373 478,875 584,771 6.7% (420,686) 0 0 2 59,000 $30.83
2008 21 8,727,373 160,710 164,085 1.9% (87,682) 1 798 1 4,000 $32.56
2007 21 8,726,575 75,605 75,605 0.9% 94,529 0 0 1 4,000 $33.79
2006 21 8,726,575 165,539 170,134 1.9% 423,364 10 375,001 1 4,000 $33.44
Source: CoStar Property®
UC Inventory
Existing Inventory Vacancy Deliveries UC Inventory
Existing Inventory Vacancy Deliveries UC Inventory
Existing Inventory Vacancy Deliveries
- 23. 18 THE COSTAR RETAIL REPORT ©2013 COSTAR GROUP, INC.
SAN DIEGO – YEAR-END 2012
San Diego Retail Market
FIGURES AT A GLANCE
Shopping Center Market Statistics Year-End 2012
Net Quoted
Period # Ctrs Total GLA Direct SF Total SF Vac % Absorption # Blds Total GLA # Blds Total GLA Rates
2012 4q 1,247 53,768,846 3,823,052 4,000,273 7.4% 411,479 7 204,290 7 190,383 $20.28
2012 3q 1,245 53,564,556 4,013,587 4,207,462 7.9% 170,353 3 15,565 7 204,290 $20.46
2012 2q 1,244 53,548,991 4,192,828 4,362,250 8.1% (4,199) 1 2,500 8 210,645 $20.79
2012 1q 1,244 53,546,491 4,153,626 4,355,551 8.1% (75,640) 0 0 8 206,170 $20.73
2011 4q 1,244 53,546,491 4,088,747 4,279,911 8.0% 119,266 1 6,672 4 88,330 $20.67
2011 3q 1,244 53,539,819 4,204,743 4,392,505 8.2% 124,069 0 0 4 92,502 $21.00
2011 2q 1,244 53,539,819 4,241,484 4,516,574 8.4% (73,586) 2 5,999 4 92,502 $21.25
2011 1q 1,244 53,533,820 4,175,139 4,436,989 8.3% 6,759 4 37,250 3 12,671 $21.11
2010 4q 1,243 53,496,570 4,151,988 4,406,498 8.2% (88,718) 4 56,947 5 39,749 $21.29
2010 3q 1,242 53,439,623 4,038,762 4,260,833 8.0% 60,354 2 27,189 8 94,197 $21.84
2010 2q 1,242 53,412,434 4,029,900 4,293,998 8.0% (11,335) 6 28,551 7 98,105 $22.18
2010 1q 1,240 53,383,883 3,948,094 4,254,112 8.0% 25,317 2 10,735 13 126,656 $22.27
2009 1,239 53,373,148 3,910,168 4,268,694 8.0% (868,458) 26 242,922 9 55,215 $22.51
2008 1,234 53,130,226 2,941,139 3,157,314 5.9% (150,138) 33 406,109 18 169,119 $24.67
2007 1,227 52,724,117 2,483,168 2,601,067 4.9% 926,236 54 905,052 20 255,062 $24.09
2006 1,213 51,819,065 2,509,775 2,622,251 5.1% 112,487 22 320,563 53 730,411 $23.73
Source: CoStar Property®
Specialty Center Market Statistics Year-End 2012
Net Quoted
Period # Ctrs Total GLA Direct SF Total SF Vac % Absorption # Blds Total GLA # Blds Total GLA Rates
2012 4q 12 1,654,740 116,896 126,573 7.6% (7,221) 0 0 0 0 $25.52
2012 3q 12 1,654,740 109,675 119,352 7.2% (40,801) 0 0 0 0 $24.60
2012 2q 12 1,654,740 68,874 78,551 4.7% (869) 0 0 0 0 $25.32
2012 1q 12 1,654,740 68,005 77,682 4.7% (2,717) 0 0 0 0 $23.55
2011 4q 12 1,654,740 65,288 74,965 4.5% (9,236) 0 0 0 0 $17.00
2011 3q 12 1,654,740 63,613 65,729 4.0% 2,297 0 0 0 0 $24.41
2011 2q 12 1,654,740 65,526 68,026 4.1% (3,749) 0 0 0 0 $24.41
2011 1q 12 1,654,740 61,777 64,277 3.9% (1,913) 0 0 0 0 $23.88
2010 4q 12 1,654,740 59,864 62,364 3.8% (20,521) 0 0 0 0 $23.40
2010 3q 12 1,654,740 39,343 41,843 2.5% 15,197 0 0 0 0 $18.59
2010 2q 12 1,654,740 54,540 57,040 3.4% 300 0 0 0 0 $20.28
2010 1q 12 1,654,740 54,840 57,340 3.5% (6,544) 0 0 0 0 $22.31
2009 12 1,654,740 50,796 50,796 3.1% (4,631) 0 0 0 0 $23.49
2008 12 1,654,740 46,165 46,165 2.8% (6,299) 0 0 0 0 $30.63
2007 12 1,654,740 37,366 39,866 2.4% 10,169 0 0 0 0 $23.75
2006 12 1,654,740 43,782 50,035 3.0% (16,640) 0 0 0 0 $25.86
Source: CoStar Property®
Total Retail Market Statistics Year-End 2012
Net Quoted
Period # Blds Total GLA Direct SF Total SF Vac % Absorption # Blds Total GLA # Blds Total GLA Rates
2012 4q 12,816 134,772,562 6,230,579 6,523,922 4.8% 570,355 8 364,290 11 224,150 $20.84
2012 3q 12,809 134,413,272 6,457,584 6,734,987 5.0% 285,477 3 15,565 12 398,057 $20.92
2012 2q 12,806 134,397,707 6,735,813 7,004,899 5.2% 119,640 3 12,856 12 394,635 $20.95
2012 1q 12,805 134,391,585 6,741,040 7,118,417 5.3% 123,181 3 70,071 13 392,734 $21.16
2011 4q 12,803 134,323,592 6,802,378 7,173,605 5.3% 280,496 5 101,135 8 162,257 $21.21
2011 3q 12,802 134,378,197 7,155,852 7,508,706 5.6% 324,997 2 162,160 11 257,036 $21.56
2011 2q 12,803 134,237,019 7,264,127 7,692,525 5.7% 28,510 4 34,117 12 410,559 $21.94
2011 1q 12,800 134,207,279 7,275,235 7,691,295 5.7% 111,338 7 54,307 9 281,795 $21.72
2010 4q 12,797 134,282,682 7,431,547 7,878,036 5.9% (146,754) 8 118,326 12 254,739 $21.88
2010 3q 12,790 134,213,502 7,229,581 7,662,102 5.7% 90,939 4 99,189 15 187,132 $22.19
2010 2q 12,788 134,121,174 7,191,876 7,660,713 5.7% 66,057 9 44,281 14 252,799 $22.42
2010 1q 12,785 134,104,277 7,075,179 7,709,873 5.7% 113,170 6 70,315 22 293,080 $22.61
2009 12,786 134,056,521 7,108,181 7,775,287 5.8% (1,497,100) 53 888,162 20 254,779 $23.08
2008 12,742 133,209,271 5,078,512 5,430,937 4.1% (326,620) 66 732,191 39 819,249 $25.06
2007 12,692 132,563,057 4,247,929 4,458,103 3.4% 1,986,012 77 1,387,308 42 434,882 $24.87
2006 12,634 131,644,530 5,361,983 5,525,588 4.2% 580,874 81 1,481,800 73 1,037,539 $24.75
Source: CoStar Property®
UC Inventory
Existing Inventory Vacancy Deliveries UC Inventory
Existing Inventory Vacancy Deliveries UC Inventory
Existing Inventory Vacancy Deliveries
- 24. YEAR-END 2012 – SAN DIEGO
San Diego Retail Market
©2013 COSTAR GROUP, INC. THE COSTAR RETAIL REPORT 19
Historical Rental Rates
Based on NNN Rental Rates
Source: CoStar Property®
Vacancy by Available Space Type Vacancy by Building Type
Percent of All Vacant Space in Direct vs. Sublet Percent of All Vacant Space by Building Type
Source: CoStar Property® Source: CoStar Property®
GLA By Building Type Future Space Available
Ratio of Total GLA by Building Type Space Scheduled to be Available for Occupancy*
Source: CoStar Property® * Includes Under Construction Spaces Source: CoStar Property®
$17.00
$22.00
$27.00
$32.00
$37.00
2006
1q
2006
2q
2006
3q
2006
4q
2007
1q
2007
2q
2007
3q
2007
4q
2008
1q
2008
2q
2008
3q
2008
4q
2009
1q
2009
2q
2009
3q
2009
4q
2010
1q
2010
2q
2010
3q
2010
4q
2011
1q
2011
2q
2011
3q
2011
4q
2012
1q
2012
2q
2012
3q
2012
4q
Dollars/SF/Year
Power Center Specialty Center General Retail Shopping Center Mall Total Market
0 10 20 30 40 50 60
Specialty Center
Power Center
Mall
Shopping Center
General Retail
Millions of Square Feet
4%
96%
Direct Sublet 0% 10% 20% 30% 40% 50% 60% 70%
Specialty Center
Power Center
Mall
General Retail
Shopping Center
0.31
0.01
0.00 0.00 0.00 0.00
0.0
0.1
0.1
0.2
0.2
0.3
0.3
0.4
2013 1q 2013 2q 2013 3q 2013 4q 2014 1q 2014 2q
Millions
LEASING ACTIVITY
- 25. 20 THE COSTAR RETAIL REPORT ©2013 COSTAR GROUP, INC.
SAN DIEGO – YEAR-END 2012
San Diego Retail Market
LEASING ACTIVITY
Source: CoStar Property®
* Renewal
Building Submarket SF Qtr Tenant Name Tenant Rep Company Landlord Rep Company
1 1550 Leucadia Blvd Carlsbad Ret 105,896 1st Walmart N/A Home Depot USA Inc.
2 7655 Clairemont Mesa Blvd Clarmnt/KM/TierrasntaRet 94,500 1st Zion Market Argent Retail Advisors CBRE
3 LA Fitness Oceanside Ret 75,360 1st LA Fitness N/A CBRE
4 9440 Mira Mesa Blvd Miramar/MMesa/SRnchRet 44,777 3rd H Mart N/A N/A
5 7480 Miramar Rd Miramar/MMesa/SRnchRet 43,514 3rd Woodbridge Interiors N/A Cassidy Turley San Diego
6 300 N 2nd St El Cajon Ret 40,368 2nd N/A N/A Morris & Campbell
7 11160 Rancho Carmel Dr CarmelMountainRanchRet 30,000 2nd T.J. Maxx N/A CBRE
8 Westfield Horton Plaza Downtown Ret 28,000 2nd Jimbos N/A Westfield Group
9 Parkway Plaza Village El Cajon Ret 25,016 1st HomeGoods N/A Westfield Parkway
10 13345 Poway Rd Poway Ret 23,814 3rd Michaels N/A Cushman & Wakefield, Inc.
11 Westfield Plaza Bonita Chula Vista Ret 23,000 2nd Crunch N/A Plaza Bonita
12 Liberty Station PtLoma/SportsArenaRet 22,914 3rd Point Loma Sports Club N/A CBRE
13 Wild West Village El Cajon Ret 21,067 1st San Diego Rock Church Direct Deal Cal-American Corporation
14 2010 E Valley Pky Escondido Ret 20,100 3rd 99 Cent Only Stores Cassidy Turley San Diego Lee & Associates
15 851 Showroom Pl Eastlake Ret 18,397 1st SkyZone N/A IRE Development Inc.
16 1002 Market St Downtown Ret 18,056 2nd Grocery Outlet N/A CBRE
17 4220 Balboa Ave Clarmnt/KM/TierrasntaRet 16,000 2nd NP Produce N/A Duhs Commercial
18 13345 Poway Rd Poway Ret 15,897 4th Grocery Outlet N/A Cushman & Wakefield, Inc.
19 1121 E Washington Ave Escondido Ret 15,625 1st N/A N/A CDC Commercial
20 3416 College Ave MidCity/SESanDiegoRet 15,182 2nd Chuck E Cheese Retail Insite Cassidy Turley San Diego
21 820 Civic Center Dr Vista Ret 14,110 2nd Harbor Freight Tools N/A Lee & Associates
22 Flags On Mission* Oceanside Ret 13,400 4th 1 Stop Bargain Lee & Associates Lee & Associates
23 824 Camino Del Rio N Mission Valley Ret 13,200 3rd Trader Joe’s N/A Westfield Group
24 4220 Balboa Ave Clarmnt/KM/TierrasntaRet 12,000 2nd Goodwill N/A Duhs Commercial
25 Park Plaza at the Village* Chula Vista Ret 11,934 2nd UEI Madison Street Partners Cushman & Wakefield, Inc.
26 Gaslamp Entertainment Downtown Ret 11,732 4th Fogo De Chao Sierra Realty Advisors Cushman & Wakefield, Inc.
27 3812 Grim Ave Central San Diego Ret 11,700 1st Hess Brewing Direct Deal Eileen Groth
28 824 Camino Del Rio N Mission Valley Ret 11,600 2nd Ulta Beauty N/A Westfield Group
29 Mission Square Shopping Center Oceanside Ret 11,281 2nd Everything’s a Deal Duhs Commercial Colliers International
30 4102 El Cajon Blvd MidCity/SESanDiegoRet 11,200 1st WSS Shoes Rosano Partners Wai Family Trust
31 1364 Morena Blvd PacificBeach/MorenaRet 10,800 4th N/A N/A Cushman & Wakefield, Inc.
32 9154 Mira Mesa Blvd Miramar/MMesa/SRnchRet 10,439 4th Namaste N/A Kimco Realty Corporation
33 Mission Plaza Real Shopping Center Oceanside Ret 10,354 1st Dollar Tree N/A Cushman & Wakefield, Inc.
34 4530 Camino De La Plz ImperialBch/SouthSDRet 10,310 4th Dollar Tree N/A Cassidy Turley San Diego
35 1226 E Mission Rd San Marcos Ret 10,200 2nd N/A N/A Cassidy Turley San Diego
36 7100 Broadway LemonGrv/SpringVlyRet 10,075 2nd PETCO N/A Direct Deal
37 1208 Broadway Chula Vista Ret 10,000 2nd Dollar Tree N/A SBL Professional Realty, Inc.
38 9805 Campo Rd LemonGrv/SpringVlyRet 9,999 2nd Grocery Outlet N/A Duhs Commercial
39 7323 El Cajon Blvd La Mesa Ret 9,884 4th NAPA N/A Trinity Commercial
40 11965 Bernardo Plaza Dr CarmelMountainRanchRet 9,872 3rd N/A N/A Boardwalk Development, Inc.
Select Top Retail Leases Based on Leased Square Footage For Deals Signed in 2012
- 26. YEAR-END 2012 – SAN DIEGO
San Diego Retail Market
©2013 COSTAR GROUP, INC. THE COSTAR RETAIL REPORT 21
SALES ACTIVITY
The Optimist Sales Index Average of Two Highest Price/SF's and Two Lowest Cap Rates
Source: CoStar COMPS®
Sales Volume & Price Sales Analysis by Building Size
Based on Retail Building Sales of 15,000 SF and Larger Based on Retail Building Sales From Oct. 2011 - Sept. 2012
Bldg Size # RBA $ Volume Price/SF Cap Rate
< 25,000 SF 157 986,050 287,365,023$ 291.43$ 7.12%
25K-99K SF 18 893,776 171,737,100$ 192.15$ 7.45%
100K-249K SF 2 257,818 29,500,000$ 114.42$ 7.20%
>250K SF - - - -$ -
Source: CoStar COMPS® Source: CoStar COMPS®
U.S. Price/SF Comparison U.S. Cap Rate Comparison
Based on Retail Building Sales of 15,000 SF and Larger Based on Retail Building Sales of 15,000 SF and Larger
Source: CoStar COMPS® Source: CoStar COMPS®
$30
$80
$130
$180
$230
$280
$330
$380
$430
2009
1q
2009
3q
2010
1q
2010
3q
2011
1q
2011
3q
2012
1q
2012
3q
DollarsperSF
San Diego US
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
2009 1q 2009 3q 2010 1q 2010 3q 2011 1q 2011 3q 2012 1q 2012 3q
MillionsofSalesVolumeDollars
$0
$50
$100
$150
$200
$250
$300
$350
$400
Price/SF
Sales Volume Price/SF
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
2009 4q 2010 1q 2010 2q 2010 3q 2010 4q 2011 1q 2011 2q 2011 3q 2011 4q 2012 1q 2012 2q 2012 3q
CapRatePercentage
$0
$100
$200
$300
$400
$500
$600
Dollars/SF
Cap Rate Price/SF
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
2009
1q
2009
3q
2010
1q
2010
3q
2011
1q
2011
3q
2012
1q
2012
3q
CapRatePercentage
San Diego US
- 27. 22 THE COSTAR RETAIL REPORT ©2013 COSTAR GROUP, INC.
SAN DIEGO – YEAR-END 2012
San Diego Retail Market
SALES ACTIVITY
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- 28. ©2013 COSTAR GROUP, INC. THE COSTAR RETAIL REPORT 23
YEAR-END 2012 – SAN DIEGO
San Diego Retail Market
MARKET HIGHLIGHTS – CLASS “A, B & C”
C E N T R A L S A N D I E G O M A R K E T
Deliveries, Absorption & Vacancy Historical Analysis, All Classes
Source: CoStar Property®
Vacant Space Quoted Rental Rates
Historical Analysis, All Classes Historical Analysis, All Classes
Source: CoStar Property® Source: CoStar Property®
Net Quoted
Period # Bldgs Total RBA Vacant SF Vacancy % Absorption # Bldgs Total RBA # Bldgs Total RBA Rates
2012 4q 4,535 40,643,411 1,575,911 3.9% 2,619 3 85,830 1 1,800 $23.23
2012 3q 4,532 40,557,581 1,492,700 3.7% 198,905 0 0 4 87,630 $22.95
2012 2q 4,532 40,557,581 1,691,605 4.2% (66,399) 1 6,500 4 87,630 $22.43
2012 1q 4,532 40,554,115 1,621,740 4.0% 126,134 3 70,071 5 94,130 $23.12
2011 4q 4,530 40,486,122 1,679,881 4.1% 218,044 3 87,483 6 155,901 $23.64
2011 3q 4,527 40,398,639 1,810,442 4.5% 66,541 0 0 9 243,384 $23.87
2011 2q 4,530 40,419,621 1,897,965 4.7% (123,659) 2 28,118 8 234,747 $24.29
2011 1q 4,529 40,395,880 1,750,565 4.3% 68,777 0 0 4 106,964 $23.97
2010 4q 4,529 40,395,880 1,819,342 4.5% (50,633) 0 0 3 49,433 $23.98
2010 3q 4,529 40,395,880 1,768,709 4.4% 114,763 2 70,929 1 21,315 $23.81
2010 2q 4,528 40,328,468 1,816,060 4.5% 58,190 3 8,731 3 92,244 $23.38
2010 1q 4,525 40,319,737 1,865,519 4.6% 80,043 1 7,000 6 100,975 $23.50
2009 4q 4,525 40,314,321 1,940,146 4.8% 41,738 7 67,444 7 107,975 $24.10
2009 3q 4,520 40,252,027 1,919,590 4.8% 32,652 3 13,317 12 117,029 $24.45
2009 2q 4,517 40,238,710 1,938,925 4.8% (37,304) 5 25,762 15 130,346 $24.90
2009 1q 4,514 40,221,017 1,883,928 4.7% (429,074) 4 23,324 15 120,487 $25.79
Source: CoStar Property®
UC InventoryDelivered InventoryExisting Inventory Vacancy
(0.500)
(0.400)
(0.300)
(0.200)
(0.100)
0.000
0.100
0.200
0.300
2009 1q 2009 2q 2009 3q 2009 4q 2010 1q 2010 2q 2010 3q 2010 4q 2011 1q 2011 2q 2011 3q 2011 4q 2012 1q 2012 2q 2012 3q 2012 4q
MillionsSF
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
PercentVacant
Delivered SF Absorption SF Vacancy
$21.50
$22.00
$22.50
$23.00
$23.50
$24.00
$24.50
2011 1q 2011 2q 2011 3q 2011 4q 2012 1q 2012 2q 2012 3q 2012 4q
Dollars/SF/Year
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
1.80
2.00
2011 1q 2011 2q 2011 3q 2011 4q 2012 1q 2012 2q 2012 3q 2012 4q
MillionsSF
Direct SF Sublet SF
- 29. 24 THE COSTAR RETAIL REPORT ©2013 COSTAR GROUP, INC.
SAN DIEGO – YEAR-END 2012
San Diego Retail Market
MARKET HIGHLIGHTS – CLASS “A, B & C”
E A S T C O U N T Y M A R K E T
Deliveries, Absorption & Vacancy Historical Analysis, All Classes
Source: CoStar Property®
Vacant Space Quoted Rental Rates
Historical Analysis, All Classes Historical Analysis, All Classes
Source: CoStar Property® Source: CoStar Property®
Net Quoted
Period # Bldgs Total RBA Vacant SF Vacancy % Absorption # Bldgs Total RBA # Bldgs Total RBA Rates
2012 4q 2,065 19,783,836 828,186 4.2% 130,479 0 0 1 14,408 $16.74
2012 3q 2,065 19,783,836 958,665 4.8% 82,293 1 5,000 1 14,408 $16.80
2012 2q 2,064 19,778,836 1,035,958 5.2% 37,733 0 0 2 19,408 $16.87
2012 1q 2,064 19,778,836 1,073,691 5.4% 32,421 0 0 2 19,408 $16.65
2011 4q 2,064 19,778,836 1,106,112 5.6% (33,562) 0 0 0 0 $16.31
2011 3q 2,065 19,784,776 1,078,490 5.5% 157,076 0 0 0 0 $16.21
2011 2q 2,065 19,784,776 1,235,566 6.2% (6,157) 0 0 0 0 $16.51
2011 1q 2,065 19,784,776 1,229,409 6.2% (25,395) 0 0 0 0 $16.83
2010 4q 2,065 19,784,776 1,204,014 6.1% (37,605) 0 0 0 0 $17.04
2010 3q 2,065 19,784,776 1,166,409 5.9% (57,221) 0 0 0 0 $17.36
2010 2q 2,065 19,784,776 1,109,188 5.6% (1,809) 0 0 0 0 $18.06
2010 1q 2,071 19,812,160 1,134,763 5.7% (38,903) 0 0 0 0 $18.47
2009 4q 2,075 19,822,403 1,106,103 5.6% (14,565) 0 0 0 0 $18.76
2009 3q 2,075 19,822,403 1,091,538 5.5% (59,436) 2 5,600 0 0 $19.63
2009 2q 2,073 19,816,803 1,026,502 5.2% (50,759) 1 14,758 2 5,600 $19.78
2009 1q 2,072 19,802,045 960,985 4.9% (170,045) 0 0 3 20,358 $20.01
Source: CoStar Property®
UC InventoryDelivered InventoryExisting Inventory Vacancy
(0.200)
(0.150)
(0.100)
(0.050)
0.000
0.050
0.100
0.150
0.200
2009 1q 2009 2q 2009 3q 2009 4q 2010 1q 2010 2q 2010 3q 2010 4q 2011 1q 2011 2q 2011 3q 2011 4q 2012 1q 2012 2q 2012 3q 2012 4q
MillionsSF
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
PercentVacant
Delivered SF Absorption SF Vacancy
$15.80
$16.00
$16.20
$16.40
$16.60
$16.80
$17.00
2011 1q 2011 2q 2011 3q 2011 4q 2012 1q 2012 2q 2012 3q 2012 4q
Dollars/SF/Year
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
2011 1q 2011 2q 2011 3q 2011 4q 2012 1q 2012 2q 2012 3q 2012 4q
MillionsSF
Direct SF Sublet SF
- 30. ©2013 COSTAR GROUP, INC. THE COSTAR RETAIL REPORT 25
YEAR-END 2012 – SAN DIEGO
San Diego Retail Market
MARKET HIGHLIGHTS – CLASS “A, B & C”
I - 1 5 C O R R I D O R M A R K E T
Deliveries, Absorption & Vacancy Historical Analysis, All Classes
Source: CoStar Property®
Vacant Space Quoted Rental Rates
Historical Analysis, All Classes Historical Analysis, All Classes
Source: CoStar Property® Source: CoStar Property®
Net Quoted
Period # Bldgs Total RBA Vacant SF Vacancy % Absorption # Bldgs Total RBA # Bldgs Total RBA Rates
2012 4q 466 6,407,448 332,050 5.2% 45,923 0 0 0 0 $25.31
2012 3q 466 6,407,448 377,973 5.9% 79,084 0 0 0 0 $25.55
2012 2q 466 6,407,448 457,057 7.1% (43,276) 0 0 0 0 $25.90
2012 1q 466 6,407,448 413,781 6.5% (19,402) 0 0 0 0 $24.35
2011 4q 466 6,407,448 394,379 6.2% (296) 1 6,672 0 0 $24.26
2011 3q 465 6,400,776 387,411 6.1% (36,375) 0 0 1 6,672 $24.02
2011 2q 465 6,400,776 351,036 5.5% (3,891) 0 0 1 6,672 $23.38
2011 1q 465 6,400,776 347,145 5.4% (3,543) 1 13,969 1 6,672 $24.10
2010 4q 464 6,386,807 329,633 5.2% 1,282 0 0 1 13,969 $24.82
2010 3q 464 6,386,807 330,915 5.2% 1,292 0 0 1 13,969 $27.45
2010 2q 464 6,386,807 332,207 5.2% 5,652 0 0 1 13,969 $27.27
2010 1q 464 6,386,807 337,859 5.3% 20,168 0 0 1 13,969 $27.47
2009 4q 464 6,386,807 358,027 5.6% 6,252 0 0 0 0 $28.44
2009 3q 464 6,386,807 364,279 5.7% (38,262) 0 0 0 0 $29.43
2009 2q 464 6,386,807 326,017 5.1% (6,925) 0 0 0 0 $29.76
2009 1q 464 6,386,807 319,092 5.0% (42,036) 0 0 0 0 $29.84
Source: CoStar Property®
UC InventoryDelivered InventoryExisting Inventory Vacancy
(0.060)
(0.040)
(0.020)
0.000
0.020
0.040
0.060
0.080
0.100
2009 1q 2009 2q 2009 3q 2009 4q 2010 1q 2010 2q 2010 3q 2010 4q 2011 1q 2011 2q 2011 3q 2011 4q 2012 1q 2012 2q 2012 3q 2012 4q
MillionsSF
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
PercentVacant
Delivered SF Absorption SF Vacancy
$22.00
$22.50
$23.00
$23.50
$24.00
$24.50
$25.00
$25.50
$26.00
$26.50
2011 1q 2011 2q 2011 3q 2011 4q 2012 1q 2012 2q 2012 3q 2012 4q
Dollars/SF/Year
0.00
0.05
0.10
0.15
0.20
0.25
0.30
0.35
0.40
0.45
0.50
2011 1q 2011 2q 2011 3q 2011 4q 2012 1q 2012 2q 2012 3q 2012 4q
MillionsSF
Direct SF Sublet SF