DEL MAR, CA—Food, financial, fitness, face and fashion are the five “Fs” that are active in San Diego's high-end, North County coastal Del Mar retail submarket, JLL VP Corinna Gattasso tells GlobeSt.com. Gattasso, along with the firm's Craig Killman, is handling the leasing efforts for Del Mar Plaza, a 74,631-square-foot, three-level, open-air shopping center at 1555 Camino Del Mar here, and the center is on track to an occupancy of 90% leased following a successful joint repositioning effort with owner GLL Real Estate Partners. We spoke exclusively with Gattasso about the Del Mar retail market, how it's changing and what is needed in terms of retail tenants.
GlobeSt.com: How would you characterize the Del Mar retail market?
Gattasso: The Del Mar retail market is very active and highly desirable among tenants because of the demographic profile of sophisticated, educated, high-net-worth individuals. The five “Fs” are the active segments in retail: food, financial, fitness, face (everything beauty) and fashion. Due to the low vacancy rate, the barrier to enter this market is high, as is the price per square foot, which tenants are still willing to pay to open in the Del Mar community.
GlobeSt.com: What new types of retailers are entering this market?
Gattasso: The North County coastal community attracts high-net-worth individuals who enjoy an active lifestyle; therefore, looking good and feeling good is a way of life. It is typical for residents to hold multiple fitness memberships in order to enjoy a variety of classes including yoga, Pilates and spin cycling. Consuming healthy, organic foods and juices and enjoying the nightlife are also high priority. Tenants that have signed deals or are opening this year include Salon Republic, a 10,000-square-foot salon (opening Q2 '17), Sam Fox Restaurant Group and Gelson's Market.
GlobeSt.com: What does the market need in terms of retail?
Gattasso: While specific healthy cuisine, quick-serve, tasty food will always be desirable, it's restaurants that offer a fun atmosphere that remain in demand. Del Marians love to socialize, especially during racetrack season; however, the services segment—including financials, health/beauty and fitness—seems to have the businesses with the highest demand.
GlobeSt.com: What else should our readers know about this market?
Gattasso: The increasing minimum wage, additional competition and high insurance premiums will have a significant impact on restaurateurs. Landlords ought not to be surprised if tenants look to restructure leases to maintain a 6% to 8% occupancy cost. San Diego is gorgeous, but the sunshine and climate come with a hefty price tag, which means less disposable income in some parts of the county. However, it is the coastal communities that maintain their value and attract people with the most income.
DEL MAR, CA—Food, financial, fitness, face and fashion are the five “Fs” that are active in San Diego's high-end, North County coastal Del Mar retail submarket, JLL VP Corinna Gattasso tells GlobeSt.com. Gattasso, along with the firm's Craig Killman, is handling the leasing efforts for Del Mar Plaza, a 74,631-square-foot, three-level, open-air shopping center at 1555 Camino Del Mar here, and the center is on track to an occupancy of 90% leased following a successful joint repositioning effort with owner GLL Real Estate Partners. We spoke exclusively with Gattasso about the Del Mar retail market, how it's changing and what is needed in terms of retail tenants.
GlobeSt.com: How would you characterize the Del Mar retail market?
Gattasso: The Del Mar retail market is very active and highly desirable among tenants because of the demographic profile of sophisticated, educated, high-net-worth individuals. The five “Fs” are the active segments in retail: food, financial, fitness, face (everything beauty) and fashion. Due to the low vacancy rate, the barrier to enter this market is high, as is the price per square foot, which tenants are still willing to pay to open in the Del Mar community.
GlobeSt.com: What new types of retailers are entering this market?
Gattasso: The North County coastal community attracts high-net-worth individuals who enjoy an active lifestyle; therefore, looking good and feeling good is a way of life. It is typical for residents to hold multiple fitness memberships in order to enjoy a variety of classes including yoga, Pilates and spin cycling. Consuming healthy, organic foods and juices and enjoying the nightlife are also high priority. Tenants that have signed deals or are opening this year include Salon Republic, a 10,000-square-foot salon (opening Q2 '17), Sam Fox Restaurant Group and Gelson's Market.
GlobeSt.com: What does the market need in terms of retail?
Gattasso: While specific healthy cuisine, quick-serve, tasty food will always be desirable, it's restaurants that offer a fun atmosphere that remain in demand. Del Marians love to socialize, especially during racetrack season; however, the services segment—including financials, health/beauty and fitness—seems to have the businesses with the highest demand.
GlobeSt.com: What else should our readers know about this market?
Gattasso: The increasing minimum wage, additional competition and high insurance premiums will have a significant impact on restaurateurs. Landlords ought not to be surprised if tenants look to restructure leases to maintain a 6% to 8% occupancy cost. San Diego is gorgeous, but the sunshine and climate come with a hefty price tag, which means less disposable income in some parts of the county. However, it is the coastal communities that maintain their value and attract people with the most income.
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