Coastal Realtors say high-interest rates will likely continue to have a dampening short-term effect on the expansion of commercial retail, office, and restaurant space in La Jolla and Pacific Beach.
But the upside is that, despite tight current financial times, beach commercial real estate will remain a profitable undertaking for investors in the long run.
“Commercial real estate prices have been reduced by 20% to 30% from all-time highs in 2021 and early 2022 when the interest rates were 3% to 4%,” said Tony Franco of Franco Realty Group in Pacific Beach. “Now we’re seeing deals north of 10%. The result is you are going to see development start to slow down. With all the projects we’re looking at now, there is going to be a lag in the economy. Those are the headwinds.”
Read the full article by clicking the link below.