San Luis Obispo County Retail Market Snapshot
Vacancy in the San Luis Obispo retail market is 3.0% and has decreased 0.7% over the past 12 months. During this period, 190,000 SF has been absorbed, and 88,000 SF has delivered. Total availability, which includes sublease space, is 3.7% of all inventory. Within this market, General Retail is the largest subtype, with 9.0 million SF in this category.
Rents are around $28.00/SF, which is a 4.6% increase from where they were a year ago. In the past three years, rents have increased a cumulative 13.3%. About 190,000 SF is under construction, representing a 1.2% expansion of inventory.
In the past 12 months, 54 sales have taken place. Sales have averaged $350/SF, and the estimated value for the market as a whole is $319/SF. Over the past three years, there have been 218 sales, which have traded for approximately $310 million. The market cap rate for San Luis Obispo is 5.8%, slightly below its trailing three-year average of 6.0%.
Employment and population trends are uneven. The number of jobs has increased 2.1% in the past year, whereas population growth is flat.