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0Cushman & Wakefield | San Diego | 2019

SAN DIEGOCushman & Wakefield

Global Cities Retail Guide


SAN DIEGOOVERVIEW

Sun, surf and scenery define San Diego. Situated in the southernmost corner of California’s coastline, the city is set apart by a nearly ideal climate, 70 miles of coastline, vibrant nightlife, and diverse food culture — all of which contribute to its eclectic retail offerings.Those, combined with family-oriented recreation, luxurious accommodations around the county, and world-class arts and culture have made the city one of the top ten travel destinations in the United States, according to US News and World Reports.

Named by National Geographic as one of the “World’s Smart Cities”, San Diego offers much more than off-duty fun. World-renowned academic institutions, research consortiums and innovation incubators also define the culture. The city is home to a number of major corporate headquarters and has a competitive stronghold in software, biotechnology and life sciences, aerospace and maritime technologies, healthcare, action sports and telecommunications. These industries, coupled with San Diego’s diverse residential base and steady stream of domestic and international tourists, generate demand for a wide array of retail products and services and create a distinctive retail environment.

San Diego is the launching pad for many new food concepts, independent eateries and restaurant chains. The vitality of the Food & Beverage sector is not surprising given the state’s abundance of agricultural products and proximity to innovative and celebrated chefs.


DOWNTOWNDowntown has grown to encompass distinctive neighborhoods, including: Little Italy, Cortez Hill, Columbia District, Marina District, Gaslamp Quarter and East Village. The downtown market has historically benefitted tremendously from being a tourist and entertainment destination. The Gaslamp Quarter is ranked as San Diego’s number one tourist attraction with nearly ten million visitors annually. The diverse neighborhoods, comprised of an eclectic mix of restaurants, cafés and charming boutiques, help make downtown a hip and popular destination for dining, nightlife and the arts.

SAN DIEGOKEY RETAIL STREETS & AREAS

LA JOLLA / UTCLa Jolla is a prosperous coastal community within San Diego County, located approximately 12 miles north of Downtown San Diego. La Jolla’s beautiful beaches are world-famous. The community has strong daytime demographics, an affluent resident base and year-round tourists. La Jolla Village, a popular tourist destination and business district offers an abundance of hotels, restaurants, boutiques, cafés, museums and other high-end retailers. University Towne Center, located just east of La Jolla, is home to Westfield UTC mall which recently enjoyed a $600 million renovation. La Jolla is also home to the University of California San Diego, Scripps Institution of Oceanography, Scripps Research Institute and the Sanford-Burnham Medical Research Institute. Additionally, UTC is one of the most-sought after office addresses in the county.

MISSION VALLEYMission Valley serves as an important shopping, entertainment and business center for San Diego. The area boasts two major shopping malls: Fashion Valley Mall and Westfield Mission Valley. Many other commercial developments can be found in the valley, including shopping plazas, car dealerships, hotels, restaurants and office buildings. Surrounding restaurants and retail shops benefit from a central high-rise office core, which lends to an influx in daytime population. SDCCU Stadium serves as a major attraction and is home to the San Diego State University Aztec football team, the Holiday Bowl, International Champions Cup soccer, arena concerts, and other events. SeaWorld and Mission Bay are situated at the western outlet of Mission Valley, just west of the area’s boundaries.

CARLSBADCarlsbad, or “Village by the Sea”, is considered one of San Diego County’s core retail trade areas, boasting 25 shopping centers. The City of Carlsbad has attracted some of the region’s top employers such as Callaway Golf, Thermofisher Scientific, Taylormade - Adidas Golf and ViaSat, which have strengthened the local economy. Notable features in the area include Legoland California, The Flower Fields, The Carlsbad Premium Outlets, Westfield Plaza Camino Real, La Costa Town Square and The Forum.


SAN DIEGOKEY RETAIL STREETS & AREAS

CHULA VISTAChula Vista is the second-largest city within San Diego County. Located seven miles from both downtown San Diego and Tijuana, the busiest land border crossing in the U.S., Chula Vista has experienced rapid growth as the last major land development in the South Bay region. Chula Vista, which is Spanish for “beautiful view” boasts more than 50 square miles of coastal landscape, canyons, rolling hills and mountains. Shopping, dining and entertainment thrive among a historic downtown district with two major malls, including Otay Ranch Town Center.

HIGHWAY 78 CORRIDORHighway 78 stretches across the North County region of San Diego County, intersecting the cities of Escondido, San Marcos, Vista and Oceanside. Combined, the population total for these cities is over 500,000. San Marcos - home to California State University San Marcos and Palomar College - is considered the educational hub of North County. Retail along the corridor is a mix of regional, power and community centers, plus several home furnishing showrooms known as “Furniture Row,” most of which are visible and easily accessible from the highway, catching the attention of North County commuters.

CARMEL MOUNTAIN RANCHCarmel Mountain Ranch is an upscale, inland community, nestled in the northeast corner of San Diego County, the community is bounded by the city of Poway to the east, Rancho Bernardo to the north and Rancho Peñasquitos to the west. There are several shopping centers located within the area, including Carmel Mountain Plaza, Carmel Mountain Ranch Town Center, Carmel Mountain Ranch Home Center, Price Plaza and The Courtyard at Carmel Mountain Ranch. These shopping centers create one of the most dominant retail trade areas in north San Diego County’s Interstate-15 Corridor, offering an outstanding mix of major national brand retailers, local specialty shops and restaurants.


SAN DIEGOMARKET OVERVIEW

KEY AREAS / STREETS/SHOPPING CENTERS

CONSUMER PROFILE

MAJOR RETAILERS PRESENT NEW ENTRANTS TYPICAL RENT FOR UNIT OF 2,000 SQFT

RANGE OF UNIT SIZES

Downtown Locals, Tourists, Daytime Business, Conventioneers

Macy's, Lucky Brand Jeans, Urban Outfitters, Banana Republic, Victoria's Secret, Forever 21, Skechers, Oakley, MAC Cosmetics, Quiksilver, Reebok Fithub

Vans (Coming Summer 2019)

$36-$96 PSF 350-23,000

La Jolla / UTC Affluent Locals, Tourists, Daytime Business

Nordstrom, Macy’s, Ralph Lauren, Forever 21, Brooks Brothers, Roxy/Quiksilver, Tommy Bahama, Kate Spade, Lucky Brand Jeans, Jos. A. Bank, White House|Black Market, Amazon Books, Gepetto’s, Orange Theory Fitness, Crate & Barrel, Nordstrom Rack

Billabong, Bonobos, Quay Australia, Vineyard Vines, Warby Parker, Room & Board

$42-$100 PSF 225-21,000

Mission Valley Locals, Daytime Business, Tourists

DSW Shoe Warehouse, Old Navy, West Elm, The Container Store, Nordstrom Rack, Target, Costco, Apple Store, Microsoft, Bloomingdale’s, Nordstrom, Neiman Marcus, Macy’s, JC Penney, H&M, Forever 21, Burberry, Gucci, Hermes, Jimmy Choo, Tiffany & Co., Kate Spade, Pottery Barn

Joie, Montblanc, Rolex, Saje Natural Wellness

$30-$60 PSF 400-30,000

Carmel Mountain Ranch Locals Pier 1 Imports, Trader Joe's, BevMo, Chico’s, Nordstrom Rack, Marshalls, Ross, Michael’s, Costco, Ralphs, Banana Republic Outlet, TJ Maxx, Staples, Best Buy, Saks Off 5th, Sears Outlet, Dick’s Sporting Goods, Ulta

$30-$48 PSF 790-12,000


SAN DIEGOMARKET OVERVIEW

KEY AREAS / STREETS/SHOPPING CENTERS

CONSUMER PROFILE

MAJOR RETAILERS PRESENT NEW ENTRANTS TYPICAL RENT FOR UNIT OF 2,000 SQFT

RANGE OF UNIT SIZES

Carlsbad Locals, Tourists Macy’s, Polo Ralph Lauren Factory Store, Coach, Apple Store, H&M, MAC Cosmetics, LOFT, Tilly's, Urban Outfitters, Talbots, ULTA, Bed Bath & Beyond, Anthropologie, J. Crew, Madewell, LaCoste, Lululemon, Lowe’s

Johnny Was, Everything But Water, Windmill Food Hall (Coming 2019), Planet Fitness

$24-$48 PSF 800-35,000

Highway 78 Corridor Locals Fry’s Electronics, Nordstrom, Nordstrom Rack, Ross, Marshalls, Bed Bath & Beyond, Petco, Party City, Walmart, World Market,, Michaels, ULTA, Lowe’s, Hobby Lobby, Living Spaces, PetSmart, Old Navy, Target, Ashley Furniture, Ethan Allen, Jerome’s Furniture

HomeGoods $24-$42 PSF 900-58,000

Chula Vista Locals Macy’s, REI, H&M, DSW, Banana Republic, ULTA, Best Buy, Pier 1 Imports, Petco, TJ Maxx, Target, Lowe’s, Burlington Coat Factory, JC Penney, HomeGoods, World Market

Ross Dress for Less, GTM Discount General Stores, Wal-Mart Super Center, Zumiez, Cost Plus

$13-$40 PSF 400-50,000


WESTFIELD UTCAdjacent to the posh enclave of La Jolla, Westfield UTC recently underwent a two-phase complete renovation resulting in modern architecture, a brand new Nordstrom building, reoriented walkways and seating areas, event areas, and many new stores (both boutique and national) and eateries.

New retailers include Billabong, Bonobos, Gorjana, Johnny Was, Marine Layer, No Rest for Bridget, Rodd & Gunn, Quay Australia, Sundance, Superdry, Untuckit, Vineyard Vines, Warby Parker, Aesop, Jo Malone, NYX, Rituals, Saje Natural Wellness, Amazon Books, Tesla, Arhaus and Room & Board.

New food options include True Food Kitchen, Larsen’s Steakhouse, Great Maple, Lemonade, Raised by Wolves, Shake Shack, The Winery, Bazille, Sweetfin Poke and La Colombe Coffee.

DEL MAR HIGHLANDSDel Mar Highlands, an over-260,000-square-foot luxury shopping center in the upscale Del Mar neighbourhood of Carmel Valley, boasts $750 average sales per square foot and $1.2 million in grocery sales per week. There are active plans for a 120,000-square foot expansion to the center which will bring the total size to about 381,000 square feet at completion. Del Mar Highlands is home to the #1 volume luxury 8-plex in the Unites States –Cinepolis. The cinema recently expanded and now features 11 screens and all new state-of-the-art accommodations. Other major tenants include Bluemercury, Mathnasium, Tilly’s, Davanti Enoteca, Mendocino Farms, Nekter Juice Bar, Philz Coffee, Searsucker, Snooze Eatery, Starbucks, Urban Plates and Jimbos Naturally.

SAN DIEGOSHOPPING CENTERS

FASHION VALLEY MALLSan Diego’s largest regional mall, Fashion Valley is located in Mission Valley and is home to more than 200 stores. San Diego’s only locations of designer retailers such as Chanel, Hermes, Burberry, Prada, Ferragamo, Bottega Vaneta, Balenciaga, Valentino, Fendi, Celine, Gucci and Louis Vuitton are located at Fashion Valley. The mall is also home to department stores Nordstrom, Bloomingdale’s, Neiman Marcus, Macy’s and JC Penney, eateries like The Cheesecake Factory, True Food Kitchen and CPK, and retailers such as Anthropologie, Banana Republic, Club Monaco, Free People, Kate Spade, Lululemon, Madewell, Nike, Topshop , Zara and Forever 21.


SAN DIEGONEW DEVELOPMENT WATCH

DEVELOPMENT TO WATCH OUT FOR

THE SHOPS AT ONE PASEO

- Retail SF 96,000

- Office SF 286,000

- Residential 608 Units

Planned Opening Date 2019 and beyond

Consumer Profile Mass-market to upper-range local residents

ABOUT THE DEVELOPMENT

One Paseo, a 23-acre master planned development in Carmel Valley, will serve a variety of functions through a mix of uses: dining, shopping, residential, office and open plazas. As a mixed-use project, it will provide pedestrian-focused experiences, humanscale design, multiple access points and inviting public plazas to prioritize people and their experiences. Retailers that have been announced include International Smoke (a Michael Mina, Ayesha Curry project), Tocaya Organica, Sweetfin Poke, Shake Shack, Tender Greens, Parakeet Café, Ways & Means Oyster House, SoulCycle, Van De Vort, West of Camden and Whiskey x Leather.


San Diego offers a diverse assortment of dining options to match its eclectic population. Situated on the shores of the Pacific Ocean and in an ideal agricultural climate, San Diego has an abundance of locally grown fresh produce and freshly caught seafood—qualities that attract noteworthy chefs such as Richard Blais, Rick Bayless, Javier Plascencia and Brian Malarkey.

Hip and trendy pockets of eateries are scattered throughout San Diego County. Among these are the Uptown neighborhoods of Banker’s Hill, South Park and North Park, which have turned into incubators for new restaurant concepts. Little Italy and the Gaslamp Quarter, two retail corridors located downtown, offer a collection of noteworthy and unique restaurants. Breathtaking waterfront restaurant views can be found in La Jolla and Del Mar. Historic Old Town and Liberty Station provide new perspectives to the history of San Diego. Old Town is comprised of over 25 restaurants, all influenced by the city’s Mexican Heritage. Liberty Station is an adaptive mixed-use project where several of the retail establishments are built inside of the former Naval Training Center San Diego buildings, maintaining the appearance of the historic structures.

San Diego’s craft brewing industry continues to expand throughout the county. In 2017, there were 125 breweries, microbreweries and brewpubs – more than triple the amount in 2011. In addition to beer production, breweries that offer tasting rooms, bars, restaurants, and event spaces are becoming increasingly popular. While the trend is growing countywide, popular hubs for brewers have been concentrated in Downtown, Miramar/Sorrento Valley, and the along Highway 78 Corridor, known as “Hops Highway.” The trend has made its way up the coast to Oceanside, the gateway to San Diego, where several beer crawl itineraries offer fun dining experiences for both tourists and locals.

SAN DIEGOFOOD & BEVERAGE


FOOD & BEVERAGE MARKET OVERVIEWSAN DIEGO

KEY AREAS CONSUMER PROFILE

FOOD & BEVERAGE OPERATORS INCLUDING

RENT FOR 3,500 SQFT UNIT

Gaslamp / East Village

Locals, Tourists, Daytime Business, Conventioneers

Nobu, Tin Fish, Searsucker, Fogo de Chao, Blind Burro, Union Kitchen and Tap, barleymash, Half Door Brewing Co, Water Grill, OMNIA Nightclub

$39-$96 PSF

Little Italy Locals, Tourists Mona Lisa Italian Restaurant, Craft & Commerce, NaPizza, Prep Kitchen, BuonAppetito, Davanti Enoteca, Bencotto, Monello, Underbelly, Juniper & Ivy, Kettner Exchange, Ballast Point Tasting Room & Kitchen, Herb & Wood, The Crack Shack, Little Italy Food Hall

$42-$96 PSF

Del Mar / Encinitas / Solana Beach

Locals, Tourists, Daytime Business

Kitchen 1540, Pacifica Del Mar, Chart House, Ki's Restaurant, Pizza Port, The Fish Market, Sbicca, Blue Ribbon Artisan Pizza, Pacific Coast Grill, Jake's Del Mar, Poseidon Restaurant, Searsucker, Urban Plates, Snooze an AM Eatery, Market Restaurant & Bar, Pamplemousse, Addison Grand Del Mar

$39-$105 PSF

La Jolla / UTC Affluent Locals, Tourists, Daytime Business

AR Valentien, Galaxy Taco, El Pescador, George's At The Cove, Eddie V's, Whisknladle, Nine-Ten, Crab Catcher, Herringbone, The Cottage, The Marine Room, Brockton Villa Restaurant, Duke’s, Catania, Puesto, Truluck’s, Eureka!, Draft Republic, Season’s 52, PF Chang’s, BJ’s Restaurant & Brewery, Rock Bottom Brewery, True Food Kitchen, Shake Shack, Mendocino Farms, Philz Coffee

$30-$60 PSF

Uptown / Hillcrest / North Park

Locals Hash House a Go Go, Brazen BBQ, Urban Solace, Blind Lady Ale House, Uptown Tavern, Fig Tree Café, Buona Forchetta, Cucina Urbana, La Bonne Table, Great Maple, True North Tavern, Patio on Goldfinch, Banker’s Hill Bar, One Door North, Madison, Encontro North Park, Dunedin

$30-$48 PSF


FOOD & BEVERAGE MARKET OVERVIEWSAN DIEGO

KEY AREAS CONSUMER PROFILE

FOOD & BEVERAGE OPERATORS INCLUDING

RENT FOR 3,500 SQFT UNIT

Liberty Station Locals, Tourists Tender Greens, Slater's 50/50, Fig Tree Café, Corvette Diner, Stone Brewery World Bistro & Gardens, Con Pane, Solare Ristorante, Soda & Swine, Liberty Public Market, Fireside by The Patio, Luna Grill, Breakfast Republic, Fireside by the Patio, Five Guys, Moniker Genral, Officine Bunoa Forchetta, PiscoRotisserie

$30-$48 PSF

Old Town Tourists, Locals Barra Barra Restaurant, Casa Guadalajara, Casa de Reyes, La Piñata, Miguel's Cocina, Old Town Tequila Factory, El Agave, Café Coyote y Cantina, Fred’s Mexican Café, Rockin’ Baja Lobster, Harney Sushi, Pizza Bella Italian Bistro, Old Town Mexican Cafe

$24-$60 PSF

Oceanside Locals, Tourists Wrench and Rodent, Bagby Beer Company, Flying Pig Pub & Kitchen, Local Tap House & Kitchen, Breakwater Brewing Company, Mission Ave Bar and Grill, PCH Bar & Grill, Pour House, Privateer, Legacy Brewing Company, Tap That, Oceanside Ale Works, Golden Coast Mead, 333 Pacific, Harney Sushi, Harbor Fish and Chips, Tin Fish

$24-$51 PSF

No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and the same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by our principals.

© 2019 Cushman & Wakefield. All rights reserved.

ERIKA SCHANKEManaging DirectorAmericas Retail Services1290 Avenue of the AmericasNew York, NY 10104, USATel: +1 212 841 5024Mob: +1 404 680 [email protected]

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