The End of an Era: Fry's Electronics Retail Use in Serra Mesa Gives Way to New Apartment Development

The iconic Fry’s Electronics building located at 9825 Stonecrest Blvd San Diego, California 92123,  in the Serra Mesa neighborhood, was once a hub for tech enthusiasts, is being demolished to make way for a new apartment complex. The property, which has stood vacant since Fry’s closed its doors in February 2021, will be transformed into a 310-unit apartment complex.  

The Highest and Best Use of many retail properties in San Diego County has shifted to multifamily housing.  The site, just south of a Walmart along the I-15, has excellent exposure and access. 

Since Fry's closed its doors, the once-bustling parking lot has been fenced off, signaling the start of its transformation. As construction moves forward with plans for the new 310-unit multifamily development, it marks another shift in Serra Mesa’s landscape, with a growing focus on housing in the area. Though it’s bittersweet for those who remember the thrill of Fry’s and Incredible Universe, it’s a reminder of how retail spaces must evolve to meet the community's changing needs.

Rental Rates Since the LA Fires

 

The Guardian is reporting on rents in L.A. since the fire.    According to the article, "Between 7 and 18 January, more than 1,300 listings on Zillow appear to have broken the state’s price gouging law, the report found. More than 1,100 landlords and real estate agents have engaged in the tactic, with 38 identified as repeat offenders. Altogether, the listings sought to illegally overcharge renters by $7.7m a month, or $92.4m a year."

New Developments Planned for National City

 

New National City Project Planned    Six sites are being offered to developers to expand the housing stock in South Bay. "Officials have previously estimated National City needs an additional 5,500 new housing units by 2029 in National City to meet regional demands."

New Real Estate Developments Coming Online in 2025.

 

New San Diego County real estate projects opening in 2025. Some much-needed multifamily and single-family projects are coming online in the South Bay this year. The South Bay also has the Gaylord Pacific waterfront development.  A new extension and exit on I-5 is now dedicated to this significant bayfront hospitality project.  

Are San Diego Apartment Rents Getting Rigged By AI?

 

Are San Diego Apartment Rents Getting Rigged By AI?   Channel 10 News reports that the City of San Diego is investigating the impact that apartment websites have on rental rates. Studies in other major metropolitan areas have indicated that large multifamily operators have been using leasing platforms that share data, which has increased rents. 

 

Walgreens to Vacate Some Primary Retail Locations

 

More retail real estate repositioning is on the horizon. Walgreens will vacate some primary retail spaces.

CoreLogic Construction Cost Trends

 

CoreLogic has published an interesting podcast about construction cost trends.

Graph of The San Diego County Case Shiller Index by Year

The Case Shiller San Diego County market appreciation year-to-date, through July 2024.  This table shows the annual market appreciation by year.

Apartment Rental Increases in San Diego

 

Some San Diego apartment landlords are increasing rents above the legally allowed limit.

More Retail Drugstore Closures Anticipated

 

As Amazon and other vendors sell and ship prescription medications to your door, retail pharmacy storefronts are increasingly in trouble.  Big box retailers such as Costco and Walmart also have in-house pharmacies that compete directly with neighborhood drugstores.  Traditional neighborhood drug stores have experienced increased losses due to theft in the front-of-store general merchandise retail area.  These changes are causing many locations to shutter. 

Pharmacy closures happening all over the United States.

Triple A Insurance Company Uses Drone Inspection Information to Cancel Property Owners Insurance

 

Insurance companies are using drones to check on your property without your consent.  What will they think of next?

Section 8 Apartments

 

Section 8 Apartment Voucher System - Not Working in 2024.  USA Today has an article about apartment tenants needing help finding Section 8 rental units in the current market.   

Commercial Buildings Designed to Preserve and Manage Water

 

The BBC has an interesting article about commercial property designed to preserve and manage water, which we could learn from here in California. 

Water Solutions Used in Asia

Bankrate reports on the new real estate commission changes taking effect this month.

 

New real estate commission rules to take effect in San Diego in March of 2024.

Blackstone Apartments in San Diego

 

CBS News reports on Blackstone apartment rents in San Diego.   

San Diego's Multi-Family Ranking

Rent Cafe has reported the new Multi-Family market rankings based on the most recent Yardi Matrix data from July 2024.  According to the report, which tracks Apartment properties with 50 units or more, the units had an average lease renewal rate of 53.10% and an overall occupancy rate of 94.8%. The apartment units turned over were vacant for an average of 43 days and had an average of 10 applicants. You can see the full report here: San Diego Apartment Ranking

San Diego Water Price Increase Is Up for Discussion - Rate Hike Expected in 2025

 The Voice of San Diego reports on potential increases to the local water costs.  The San Diego County Water Authority is considering increasing water prices by 18 percent in January 2025.   

PBS Report on Real Estate and Climate Change - Ten Percent of US Homes Impacted

 

PBS reports on climate change and how this is impacting real estate markets.   

Apartment Construction in San Diego

 

The Construction Industry Research Board Reports the Final Numbers for Apartment and Housing Construction in San Diego.  According to the report, San Diego County built more housing in 2023 than in the previous 17 years. The 2023 total for multi-family was 9,100 units. The additional inventory has done little to curb apartment rental rates. The San Diego apartment market has very limited vacancy and historically high rental rates.

San Diego Real Estate - Home Ownership Trends

 Channel 10 News reports on the cost of San Diego real estate increasingly placing home ownership out of reach.