www. Apar t ment Real t y Gr oup.

c om

THE APARTMENT MARKET SPECIALISTS

(619) 222-9501
www.ApartmentRealtyGroup.com
Info@ARG1031.com

4TH Quarter 2013
MARKET UPDATE

San Di ego County
2014 Apartment Outlook












































SAN DIEGO COUNTY APARTMENT PERSPECTIVE & OUTLOOK:

By: JAMES V. CARTER (619) 222-9501 JCarter@ARG1031.com | January 2014

The San Diego multifamily investment market will remain strong for core locations and quality assets
as interest rates remain low and the market lacks quality inventory. However, we do expect cap
rates to rise a bit in 2014 as the prospects of rising interest rates loom.

Investor demand remains high due to the low interest rate environment and the robust rental
market. Buyers of all levels are still aggressively seeking to purchase San Diego apartment assets.
There was steady rent growth county-wide in 2013 and should continue for the core metro areas.



VACANCY DATA IS COLLECTED FROM THE SAN DIEGO COUNTY APARTMENT ASSOCIATION (SDCAA) 'Fall 2013 San Diego Vacancy & Rental Rate Survey.' SALES DATA STATISTICS ARE
PROVIDED VIA COSTAR COMPS: 5-50 UNITS FROM 1/1/13 - 12/31/13. UNEMPLOYMENT SOURCE: EMPLOYMENT DEVELOPMENT DEPARTMENT (EDD) NOVEMBER 2013. This information is for
discussion purposes only and we believe to be reliable however, we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age
are approximate. Principals must verify the information and bears all risk for any inaccuracies. Apartment Realty Group (ARG) and/or any affiliate and/or agent(s) is not qualified to provide, and have not
been contracted to provide, legal, financial, or tax advice, and that any such advice regarding any investment by the recipients must be obtained from the recipients attorney, accountant, or tax professi onal.
Main Office: 2251 San Diego Avenue South Suite 157 San Diego, CA 92110. California BRE License: 01863733

CURRENT MARKET CONDITIONS:
UNEMPLOYMENT: San Diego County Unemployment Rate is
at 6.8% (LA County at 9.4% and CA at 8.3%)
RENT: Average rents are expected to rise this year
county-wide by approximately 3%
VACANCY: County-wide vacancy is steady at 4.1%





VACANCY RATES BY REGION:

NORTH COUNTY - 4.4 percent

CITY OF SAN DIEGO - 3.4 percent

EAST COUNTY - 3.7 percent

SOUTH BAY - 5.6 percent





AVG CAP AVG GRM # of Sales AVG $/Unit AVG $/SF
NORTH COASTAL:

5.46% 11.04 22 $171,287 $246.47
NORTH INLAND:

5.79% 10.30 30 $126,020 $141.21
CENTRAL COASTAL:

4.53% 14.37 40 $209,905 $316.47
CENTRAL SAN DIEGO:

5.67% 10.20 144 $130,029 $181.75
EAST COUNTY:

5.87% 9.83 67 $114,896 $140.14
SOUTH BAY:

5.82% 10.70 39 $130,418 $181.57



SAN DIEGO COUNTY APARTMENT SALES STATISTICS | Jan 1, 2013 - DEC 31, 2013: