San Diego considering more apartment rental regulations to limit fees.

 

San Diego is considering new apartment regulations regarding rental fees.

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.

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.

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.

San Diego Moves Into Top Slot As The Most Expensive City In the United States

 

According to US News and World Report -

San Diego Tops Rankings - Moves to Number One

Real Estate Insurance Costs Are Becoming Primary Drivers In Some Markets

 

Insurance has started driving multiple real estate markets across the U.S.  I see posts about people losing their insurance regularly here in San Diego. The loss of insurance and higher HOA fees in Florida are impacting condominium appraised values.  State governments are concerned and trying to assist. Unfortunately, there is no easy solution to this problem.  

NPR Reports on New Zoning Laws to Encourage More Apartments and Housing

 

NPR reports on New Zoning Laws where cities are adopting new laws that allow for higher-density apartment projects with reduced parking requirements and allow for multiple units on standard residential lots.  As a result of changes in local zoning laws and the sharp increase in residential values and apartment rents, the highest and best use of many properties has shifted. 

Apartment Renters

 

CNN has a report on apartment renters who are getting tapped out. 

San Diego Approves New Tenant Protection Ordinance

 

New laws to take effect for local apartment owners.

According to KUSI, "The Tenant Protection Ordinance will apply protections from day one of a lease with exemptions for short-term leases, offer financial assistance to tenants from landlords when a tenant’s lease is terminated through no fault of their own and have accountability measures to punish those violating tenant protections."

Bed Bath & Gone - New Retail Uses Planned For Commercial Real Estate Spaces

 

Bed Bath & Beyond Store Closers to Add New Retail Inventory

CNN reports on the Bed Bath & Beyond home goods retailer that was not able to weather the pandemic and increases online shopping and is having to liquidate its commercial real estate portfolio. Most of the stores are in the suburbs of mid-size and large cities with square footage under 50,000 square feet.

San Diego Authorizes Rapid Approval of Affordable Housing Projects

 

The City of San Diego is starting to pull out all the stops to get more housing approved and online.  The Mayor has issued a new executive order.  It will be interesting to see how many developers step up based on the potential for fast-track project approval. 

San Diego Executive Order For Rapid Approval of Affordable Housing Projects

Rent Cafe Ranks San Diego As One of the Most Competitive Apartment Markets In the U.S.

San Diego is listed as one of the top most competitive apartment markets in the United States, according to a report released by Rent Cafe.    The study has San Diego ranked as the 13th most competitive apartment market in the United States, with a 97.1% apartment occupancy rate and a 55.3% apartment lease renewal rate, with most apartments having 22 applicants.  

ABA Supports Proposed Residential Real Estate Appraisal Threshold Increase | ABA Banking Journal

https://bankingjournal.aba.com/2019/02/aba-supports-proposed-residential-real-estate-appraisal-threshold-increase/