A group mentality such as this causes a snowball effect. Therefore, the way we think as a group can have a direct affect not only on the circumstances of our industry, but on business and economic cycles as well. Anyone who's been in San Diego's real estate industry for a respectable length of time has come to expect the ups and downs as part of the cyclical nature of the real estate market. Whether a developer, broker, designer or contractor, the key to long-term success has been good timing, sound survival strategy, and the ability to foresee the future. It was only when the local media began stressing military cutbacks and the economical impact on San Diego that businesses began taking measures to prepare for the worst.
Businesses staff up, expand, and build larger and better work space for their employees.
According to Emerging Trends Real Estate Report, San Diego currently ranks as the seventh-strongest market in the U.S. for commercial real estate investment, leading 18 other metropolitan markets. Real estate experts are pointing to San Diego's strong pent-up demand, plentiful investment capital for new development, and a diminishing supply of existing space as factors fueling one of the hottest commercial markets in more than a decade. Analysis of industry reports, including the TURI Commercial Services summary, reveal that commercial rental rates have increased up to 30 percent in the past year, leading to dramatic increases in market values. Vacancy rates in the San Diego County market area, once as high as 28 percent, are down to less than five percent. Absorption is skyrocketing, inventory is dwindling and land prices continue to rise.