[sdrealtor]

Last year looking at data I thought 10% appreciation was in the bank. We already got it in the first two months though it will take a while for the data showing that to come in. Happy for all of us who got in when they could. Truly the opportunity of a lifetime!

[sdrealtor]

[quote=Coronita][quote=sdrealtor]https://sandiegolifechanging.org/blog/unicorns-are-real-san-diego-startups-to-watch/[/quote]

I didn’t know ShieldAi and Drata are unicorns. Oops. Interesting . I know a couple old colleagues from Carlsbad tech community went to both when they were still in their Series A, some ex-GoPro folks too.

Seismic is also on that list. They’ve been around for some time. I think one of my old neighbors was a founding member ….I forget what they do.

ClickUp was one of the Bay Area startup that moved here to SD.

I think also Kandji is close on this list. They got their Series C round of investment back in November. $100m or something like that. Mac OSX MDM player.

https://kandji.io/product

Kandji pulls in $100M Series C on $800M valuation, up 10x since last year

It will be interesting to see if Apple buys them or squeezes them out. I think the latter since Apple does that to small companies.

Show me.the money.[/quote]

So many forces converging here now. It’s not just the wfh trend. The growth of this place is palpable in ways it’s never been before

[sdrealtor]

Unicorns are real: San Diego startups to watch

[sdrealtor]

[quote=Coronita][quote=deadzone]Regarding commercial real estate, since we are focusing on Tech industry in this thread why don’t we watch Qualcomm as a barometer since they are the largest tech company in San Diego.

So what are their plans for bringing employees back to the office? Or if they are seriously going full remote on permanent basis, then they should be jettisoning a lot of their office space. Is this happening? Anyone know?[/quote]

It’s hybrid. 2-3 days at work, exceptions can be made. Qualcomm never had plans to go full remote…ever…

Again, you are arguing with yourself here in cirles. Not sure what you are trying to get at.

Are you saying because a bunch of Qualcomm people are going back to the office, the demand for real estate here will suddenly drop off?
If so, that makes no sense.

Whether Qualcomm is going back to the office or not doesn’t matter. Qualcomm is based here SD. so if people need to work in the office, they need a home here SD. If they were working remote, they still need a home here in SD. So how is Qualcomm being fully remote or hybrid or fully on office matter to the local SD housing market?

The only difference would be a employer not based here in San Diego allowing people to work anywhere.Like tenant that signed a 2 year lease. Both are in marketing and work remote. She has to show up every so often to either the satellite office in OldTown or meet quarterly in LA. But other tha that they will stay down here and send their kids to school on DelMarUnified for $5000/month for 2800 sqft versus previously spending $5000/month for a 2/2 apt in Culver City with Culver City schools…
So, there are some transplants.

And there’s a lot of job growth here in SD where new people have new high paid biotech/life sciences job..That also means people need housing.

So why does.a few large companies saying they are doing a hybrid model make a signficant difference in the SD housing demand?

There appears to be 3 different categories of people living and working here and the remote workers is only one of those 3.

BTW: hybird model works if the job is in LA or OC. If one only.needs.to show up for work 1-2 days, so.e people dont mind taking the coaster to OC for example. I had a patent attorney friend that did that years ago…[/quote]

One of my good friends is full remote at QCOM. Has been for almost two years from east coast. When they initially said no, he said oh ok guess I’ll go find another job. He arranged that before COVID. He lived here over 20 years and wants to live other places. He’ll never move back and can stay there as long as he wants. He does visit his wine at my house every couple months

[sdrealtor]

San Diego’s Office Sector Outperforms Nearby Metros;
Tech-Related Expansions Fuel Recovery

Large-scale leases signal long-term confidence. Contrasting other Southern Califor-
nia markets, office vacancy in San Diego compressed by more than 100 basis points last

year. A bevy of 50,000-square-foot-plus commitments by life-science and tech firms was
largely to credit for the notable improvement in leasing velocity. Highlighting activity
in 2021, Apple inked six agreements for floorplans in UTC and Rancho Bernardo that
together totaled nearly 500,000 square feet. Additionally, medical device companies

Tandem Diabetes Care and Becton, Dickinson and Company agreed to occupy a com-
bined 400,000 square feet in Del Mar Heights. Expectations for office-using job creation

to outpace last year suggests other sizable commitments may await the metro in 2022. As
a result, submarkets outside of Downtown San Diego, where vacancy remains well above
20 percent, may see vacancy rates fall below their long-term averages as sparse deliveries
in these locales steer prospective tenants to existing properties.
Conversion and retenanting prospects support diverse buyer pool. Institutional and
private sales activity strengthened in San Diego last year, coinciding with the return of
positive absorption and greater pricing clarity. Sorrento Mesa and adjacent areas that

are hubs for life-science companies are attracting national investors seeking $20 mil-
lion-plus assets. These submarkets boast sizable inventories of high-end space; however,

larger Class B properties are accounting for the bulk of trades. Candidates for conversion
to lab or R&D space are coveted, as assets that have undergone similar repositioning are
swiftly securing high-profile biotech tenants. Private investors are active in the sub-$10
million space, targeting smaller Class C properties near Balboa Park and Interstate 8 that
have historically been occupied by professional services firms. Assets with upcoming
leasing expirations or notable vacancies are available at low-5 to mid-7 percent returns.

[sdrealtor]

The vacant office space in SD is predominantly downtown. Suburban office space is doing much better

[sdrealtor]

[quote=deadzone][quote=Coronita]Man someone has really bad sour grapes and crow for breakfast. Desperately needing people to lose their job and housing crash in order to not feel getting left behind. UmOk..

I’m certainly glad that I don’t have to regularlypay $5 a gallon for gas in order to go to work every single day at an office. I can now get through 2.5 months without filling up. I can drive each car for about 3 weeks but at the end of 2.5 months I have to fill up five cars lol[/quote]

Obviously nearly everyone would prefer to work at home. But you can’t always get what you want.

Of course remote work will be more common than before Covid. But during Covid nearly every white collar worker in the US worked remote. That is going to reverse itself to a large extent.

Again, show me examples of large companies selling off all their office space and property and I’ll believe they are going fully remote permanently.[/quote]

With real estate as valuable as it is why would anyone sell off all their real estate holdings?

But if you try sometime, you just might find you’ll get what you need.

[sdrealtor]

One thing or rather someone hasn’t changed

[sdrealtor]

And every company that says they are going back will allow exceptions. Lots of exceptions. Google/Amazon guy with millions in the bank who loves his job, doesnt need to work but says if you make me go back Im done. What do you think Google/Amazon management gonna say to that?

[sdrealtor]

Im as wealthy as Jeff Bezos to some degree or another.

[sdrealtor]

[quote=JPJones]Hey slight tangent, do any of you watch commercial real estate? Relevant to this topic, I’ve had a decent number of friends and former colleagues mention their companies either sold or let their office leases expire to go permanently remote.

I think even the big kids won’t have a huge amount of success going back to how it was pre-covid. Employers are seeing entire teams threatening to resign when push comes to shove, and everyone in my wide circle of IT contacts that wanted to work from home permanently has either had their employer agree to it in writing, or have found another job that is 100% remote and paid more. Working remote is considered part of the overall compensation package now as well, and as long as employees have an edge, we won’t see a much of a swing back to in-office work being mandatory.

I worked in IT for 20 years up until 2017 and have never seen the job market this hot, not even during the .dot bubble. My wife decided to shop last fall and had 5 offers with better compensation in writing within the first 2 weeks, all 100% remote, and she never even got around to updating her portfolio. This has been par for the course with everyone I know working in any capacity of IT for the past year, roughly. Even if the market crashes and we head into a recession, I’m not convinced the worker shortage would even be simply offset or less.[/quote]

I Get reports from one of the big players in commercial. Just got 2022 office outlook for 46 US markets. PM me if you want a copy

[sdrealtor]

Yup that’s Tony. He’s been a FSBO over a decade. Whenever market rises he raises his price

[sdrealtor]

[quote=DaCounselor]Pacifica Serena used to be 55+, once they lifted that restriction young families started moving in. I see an increasing number of duplexes there with 2nd stories added on. Without any addition, those places are tiny, can’t believe what they are selling for but just add that neighborhood to the list of all the other neighborhoods with closed prices that make you shake your head.[/quote]

Affectionately known as Geritol Hill to long time locals. The age restrictions were lifted in mid 90’s and over next 20 years the old folks slowly died out. It took a while for the young folks to start moving in because even though the age restrictions were gone it still felt like a sr community for a while. The tide really shifted 10 to 15 years ago there. There are still some owned by family trusts but one by one they sell out also. There is no HOA there and they own the land so that presents added value. Ive seen 2 or 3 2 story additions but there will be more.

[sdrealtor]

One more that astounds me. Make that 4 more. When I bought my first place in Encinitas I remember looking at these places. You could pick them up for about $125K to 135k. That was 25 years ago. This is now

https://www.redfin.com/CA/Encinitas/287-Rosebay-Dr-92024/home/4097619

https://www.redfin.com/CA/Encinitas/725-Teaberry-St-92024/home/4122105

https://www.redfin.com/CA/Encinitas/220-Coneflower-St-92024/home/4097725

https://www.redfin.com/CA/Encinitas/276-Fraxinella-St-92024/home/4097664

[sdrealtor]

[quote=sdrealtor]More of the same

New listings 30 – little better but not close to whats needed

New Pendings of 32 – still a buyer for any decent listing!

Thats a -2 for the week.

Closed sales at 25

Price reductions at 1. Price reduced from $6.6M to $6.4M.

Total houses for sale down to 53 with median of $1.999M. (note: ran numbers earlier today and when I just rechecked before posting its already back down to 48)

In Sept a model match to my house sold for $1.24M with the best lot in the community (13,000 sq ft canyon view lot with pool and plenty of room to add pool house or ADU). Tonight a model match closed for 1.275M in poor condition with no upgrades since it was built in 99 on a small lot on a busy corner. These represent the same model but the best vs the worst home in my tract. Today the best one could go for close to 1.5M. The market has changed that much that fast.

We should have an even more compelling example soon There’s a house nearby that sold January 2020 for $1.34M. It came back on 13 months later and is in escrow with asking price of $1.679M. It went almost immediately. When it closes we will know how much the y-o-y appreciation has been with a matched pair. It should be at least 25%. I dont know what else to say.[/quote]

Tagging onto post from a year ago to show how much things have changed in a year. Last year we were in a tough inventory costrained market and now we have about half what we had then.

New listings 17 (30) – grateful my clients got a hoem a couple weeks ago hasnt been anyting close since

New Pendings of 15 (32) – nothing to buy and we should see some crazy closings soon

Thats a +2 for the week.

Closed sales at 17

Inventory at 31 (53) with median of 2.35M ($1.99M)

The house that sold for $1.24M last year would sell for $2.5M In a heartbeat if owner had the money to put about $200K into a proper remodel. He’s plodding along doing a lot of work on the yard himself and with friends but its 2.2 easy today.

Every once in a while something closes that makes me stand up and take notice. A year ago $1.24M got you a 5/3 2700 sq ft house built in 1999 needing a 200k remodel and exterior clean up on one of the premier lots (13k flat an usable canyon lot with pool) in one of the premier neighborhoods around here. Today that would be 2.5 with remodel

This is what you get today for that $1.45M

https://www.redfin.com/CA/Encinitas/809-Summerhill-Ct-92024/home/6390262

A 4/2.5 1986 sq ft remodelled twin home built in 1986 with a decent yard. I dont know that anything could show the change better

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