My two cents on downtown is that I feel it has a ways to go on the depreciation curve. It has come down alot and I sense it could still find another large chunk by the time things are said and done. A few things concern me, one of them being alot of the construction that is coming to hit the ten year anniversary. Some of the construction is well done and some is not. As investment grade goes the tide of speculative purchases made downtown had nothing to do with cash flow and everything to do with appreciation. IMO as speculative investment starts to return to SD real estate speculators will be cautious at least at first until a new bubble is alive and well. Without easy credit I find it hard to see any speculative engine at all. This leaves owner occupation for one reason or another along with TRUE second homes as at the very least the primary engines for purchasing. Given the stock of downtown properties which is non trivial I find it hard to not justify more substantial drops. I to have a few clients looking at downtown but who have decided to sit on the sidelines for now.