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Real Estate Development Trending Up in San Diego - A Good Sign for Business

Real Estate Development Trending Up in San Diego - A Good Sign for Business

Real estate development is thriving alongside a number of other industries in and around San Diego, and that’s good news for business owners or aspiring business owners. For those who already own a company in the city, stability is more likely when economic indicators are strong. For those looking to sell, strong growth eases the mind of buyers, which can grease the wheels of any transaction, and for those looking to buy, a well-performing economy is obviously a great thing.

Tech Industries Driving Some Development Growth

PricewaterhouseCoopers’ Emerging Trends in Real Estate survey for 2017 places San Diego in the top 30 alongside a number of other major cities in the nation for real estate development. PWC attributes part of the growth in the region to the technology industry, with niches such as data science, biotech, software and medical devices performing well above the national average.

While technology is a great industry for business owners, you don’t have to buy into it to succeed in San Diego. Increased development and growing technology companies mean more people are coming to the area and finding work, boosting the market for a variety of services. This trickle-down effect means good things for those wanting to buy or run restaurants, medical companies, retail establishments, professional service businesses and many other types of companies.

San Diego is also home to a variety of other strong industries. It’s rated number one for military defense assets in the world, and Forbes called it the second most inventive city in 2013. You can see more economic development stats about the city on its website.

Housing Sales Up Year Over Year in San Diego

Real estate development is having to trend upward to keep up with the number of people buying in the area. The Greater San Diego Association of Realtors reports that sales volume is up more than 5 percent year over year, with both median and average sales prices increasing as well. The time on market — how long it takes a home to sell — is down more than 11 percent year over year, which indicates a strong sellers’ market and a desire from many buyers to purchase real estate in the area.

What Does This Mean for Buying and Selling Businesses?

As noted, this is definitely good news for anyone looking to buy or sell a business in San Diego soon. The increasingly robust market does tend to favor the seller more, so buyers may have to work a bit harder to get a great deal. However, what the buyer loses in negotiating power, he or she makes up for in the ability to get up and running quickly thanks to stability in the area.

That being said, upward trends in real estate aren’t necessarily going to make every business purchase a good idea, and just because more commercial and residential buildings are going up doesn’t mean your business is automatically worth more. To understand how your opportunities or business valuation are impacted by trends in San Diego economic factors, talk to a LINK business broker today.

Contact the LINK Business San Diego Office (858) 452-3000 to find out more information.