Those Seeking Downtown S.d. Retail Space Better Act Quickly

Downtown retail vacancies during the first six months of this year improved compared with the same time last year, although more space exists today.

A report released last month by Burnham Real Estate's Urban Retail Group finds that of the roughly 4.6 million square feet of retail space in downtown today, only 6.6 percent, or about 303,000 square feet, is available. As of summer 2005, there was only 4.4 million square feet of retail space in downtown, with a vacancy rate of 7.8 percent. "The new space that has come on-line is being absorbed quickly," said Bill Shrader, senior vice president and principal with the San Diego-based retail group.

But Shrader also said, in a prepared statement, that a "notable lack of supply by late 2007 and 2008" could be in store for downtown San Diego because of the postponement and cancellation of new projects. Among recent projects to be delayed is the redevelopment of the Navy Broadway Complex, nearly 15 acres downtown expected to be transformed into office towers, a hotel and retail space.

According to the Burnham report, roughly 460,000 square feet of retail space is planned or under construction this year compared with a million square feet last year.

The downtown neighborhood with the highest vacancy rate is East Village, at 15.1 percent, followed by downtown's core, 10.8 percent, Cortez Hill, 10 percent, Columbia, 8.7 percent, the Marina District, 5.1 percent, Little Italy and the Gaslamp Quarter, tied at 4 percent, and Horton Plaza, 0.8 percent.

The Gaslamp accounts for 21.1 percent of the roughly 4.6 million square feet of retail space in downtown today, followed by Horton Plaza, 21 percent, East Village, 15.7 percent, downtown's core area, 14.2 percent, the Marina District, 9.4 percent, Little Italy, 8.9 percent, Columbia, 7 percent, and Cortez Hill, 2.7 percent.

Just outside downtown, other neighborhoods that may catch some of downtown's retail overflow are Bankers Hill, Hillcrest, Mission Hills and North Park. Combined, the four neighborhoods tout roughly 1.7 million square feet of retail space today, running at a 9 percent vacancy rate.

The Burnham report finds that North Park has the most space, with about 650,000 square feet, followed by Hillcrest, about 630,000 square feet, Bankers Hill, about 191,000 square feet, and Mission Hills, about 190,000 square feet. The highest vacancy rate among the four can be found in Bankers Hill, at 15.8 percent, followed by Hillcrest, 9.1 percent, North Park, 7.4 percent, and Mission Hills, 7.3 percent.

Franchise News: Another juice bar franchise plans to squeeze into the San Diego marketplace.

Colorado-based Squeeze Fresh Smoothies announced Sept. 21 that it plans to open at least 36 stores in San Diego by 2013, with the first opening by the end of the year. Squeeze would join other major juice bar franchisers Jamba Juice Co. and Robeks Fruit Smoothies & Healthy Eats.

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