SB 79 Takes Effect: Major Changes for Housing Density Near Transit in San Diego

 

California's new SB 79 housing law officially took effect on July 1 and is expected to have a significant impact on land use, redevelopment opportunities, and housing density near major transit corridors throughout San Diego County. The law requires cities to allow substantially greater residential density near qualifying transit stops, although implementation will vary by location.

The article below provides a helpful overview of where the law will apply immediately, where implementation may be delayed, and some of the local planning considerations that remain unresolved.

For property owners, developers, investors, lenders, and real estate professionals, understanding these changes will become increasingly important as the market evaluates potential redevelopment opportunities and land values in affected areas.

Article:KPBS Article for San Diego

Retail Repositioning - Including Major National Tenants Like Starbucks and Denny's

 

More retail repositioning is happening involving larger retail chains.  Higher costs of everything from labor to eggs to electricity have forced the closure of more restaurants and coffee establishments in San Diego.  Fast food operators are bearing the brunt as the minimum wage has been raised to $20.00 per hour.   Market Watch - Denny's Restaurants

Walgreens to Vacate Some Primary Retail Locations

 

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

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?

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

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.   

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. 

Commercial Real Estate Update from Sixty Minutes

Sixty Minutes has an informative report on commercial real estate and the post-pandemic office markets in major cities.

Apartment Renters

 

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

San Diego Reaches Top Rank - Most Expensive City in US in 2023

San Diego - America's Most Expensive City in 2023 according to U.S. News and World Report.  The sharp increase in housing purchase prices, apartment rents, and gasoline prices within just a few years is largely responsible for topping this list.  

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.

Governor Targets Under Utilized Commercial Land For Future Housing Development

 

The Governor of California is trying to clear a path and make it easier for commercial real estate developers to re-purpose commercial land for new housing inventory with two new laws. 

California Governor Signs New Law Expanding Commercial Zoning Rights To Increase Housing

Historic Downtown Theatre Must Be Torn Down

 

City of San Diego Orders a historic downtown theater to be demolished.

San Diego Millennials

 

NBC news reports on the composition of San Diego Millennials (aged 26 to 41)- a driving force behind our local real estate housing market and demand as tenants for the apartment sector.   The U.S. Census Bureau says 70% are home grown,  9.2% are from L.A, and 2.37% are from the San Francisco bay area. The other major sources of San Diego Millennials are Chicago, Phoenix, and Seattle.

New Waterfront Resort Construction To Begin Soon in Chula Vista

 

Bayfront Project In Chula Vista Is Set To Move Forward

The resort development is part of a larger master plan that has been decades in the making with the Port of San Diego. 

Chula Vista Bayfront Master Plan

The Chula Vista Bayfront Master Plan is a local and state-approved land use plan by the Port of San Diego and City of Chula Vista. The plan envisions:

70 acres of new parks (100 acres total, including existing parks)

120 acres of open space, habitat replacement, wetlands and ecological buffers to protect wildlife habitat, species and other coastal resources

Shoreline promenade, walking trails and bicycle path network

2,850 total hotel rooms

600,000 square feet of restaurant, retail and marina-support uses

220,000 square feet of mixed-use commercial recreation/marine-related office uses

1,100 – 3,000 space parking facility

Chula Vista Bayfront Plans

Otay Mesa Freeway Interchange Recently Completed - Good News For South Bay Commuters!

 

Starting this Saturday, commuters will be able to use the connectors in Otay Mesa on southbound SR-125 to eastbound SR-905 and eastbound SR-11.  San Diego to Open New Otay Mesa Freeway Interchange   

The Future of Mission Valley

Big Changes Planned For Mission Valley

An excellent article by the San Diego Union-Tribune summarizing the plans for this area.

Mission Valley Stadium Update

Voice Of San Diego Reports on the SDSU Stadium Redevelopment Project

Marcus & Millichap Weighs in on the Yield Curve Inversion

The State of California already has a similar 10% cap on annual rental increases with a required notification...

The State of California already has a similar 10% cap on annual rental increases with a required notification timeline.
#CRE #Apartments
https://www.npr.org/2019/02/27/698509957/oregon-set-to-pass-the-first-statewide-rent-control-bill