During 2014 San Diego’s office market was mostly a fixer-upper affair, with acquisitions and renovations of older buildings rather than building new constructions, while brand-new apartment building continued to grow in places like down town San Diego. Experts say even with a steadily improving economy, there’s been no rush by most developers to put up new office buildings since speculative projects that surfaced in the past year could pick up momentum in 2015. In the meantime, observers will be evaluating the impact of a recent wave of corporate mergers and acquisitions of San Diego based companies, and how those will impact demand for office, laboratory and industrial space. According to the observers, the purchase, renovation and repurposing of older properties remain the dominant trends in local commercial real estate for now and are likely to continue in the coming year.
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While brand-new apartment buildings continued to sprout in places like downtown San Diego during 2014, the region’s office market was mostly a fixer-upper affair, with acquisitions and renovations of older buildings far outpacing new construction. Even with a steadily improving economy, there’s been no rush by most developers to put up new office buildings, though experts say the trickle of speculative projects that surfaced in the past year could pick up momentum in 2015. For now, observers will be gauging the impact of a recent wave of corporate mergers and acquisitions of San Diego-based companies, and how those will impact demand for office, laboratory and industrial space. Citation and link:Hirsh, Lou. “Commercial Real Estate Sticks to Renovations and Repurposing.” SDBJ News., 02 Jan. 2015 Web. 05 Jan. 2015.