Which Asset Classes Will Lead San Diego in 2019?

San Diego

Industrial and office assets could be best positioned for a strong 2019, according to Lynn Reaser, Ph.D, CBE, chief economist and adjunct professor of economics at Point Loma Nazarene University. Reaser spoke at the economic forecast luncheon for CREW San Diego this week, held at University Club atop Symphony Towers. The economic outlook predicted stable economic growth in 2019, with GDP growth at 2.4%, 2% inflation, two more rate hikes and stock market gains of 8% or 9%.

In addition to the national overview, she also gave a more local San Diego outlook of specific asset classes. The office market will continue to see strong hiring and rent increases in 2019 with little speculative building, keeping the market in check. While growing competition from shared space providers and potentially flat absorption were concerns, she gave the office market a solid B for 2019. In San Diego, naval expansion, biotech, travel and entertainment will continue to drive the jobs market, and there will be 20,000 new jobs added this year. However, housing cost, labor supply and immigration will constrain the market.