P1247676904pUDCR

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The London Group Realty Advisors, Inc.
The San Diego Real Estate market is Reaching
Equilibrium Construction Costs have soared, but
Revenues may not
Gary H. London
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San Diego County
Current Economic Statistics

• Total Employment (Non-Farm) 1,276,608
• Unemployment Rate (Av. 2005) 4.3
• 2005 Est. Employment Growth 18,000 jobs
• 2005 Est. Job-to-Housing Ratio 1.27
• Housing Units Demanded 12,000
• New Housing Permits 2004 Est. 14,145
• Countywide Hotel Occupancy (Thru Sep 2004) 72.4
• Countywide Hotel ADR 2004 (Thru Sep 2004) 121.61

Source SANDAG, EDD, Convis, Burnham Real Estate
Services
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San Diego County
2006 Forecast

• Population Growth 38,000 42,000 persons
• Employment Growth 20,000 new jobs
• Unemployment Rate 4.1
• Housing Unit Authorizations 14,000 permits
• Inflation Rate 3.5
• Median Housing Price Change -5.5
• Prime Interest Rate 7.5
• 30 YR Fixed-Rate 6.5

Source SANDAG, EDD, Convis, Burnham Real Estate
Services
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Historical Rates of Interest
LIBOR and Prime Rate
Source U.S. Treasury
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Historical Rates of Interest
30-Year Fixed-Rate Mortgage Averages Since 1972
Source Freddie Mac
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San Diego Countys Housing Market
Average Annual Jobs Per Housing Unit
National Average 1.50 jobs per housing unit
Source CA Dept. of Finance, EDD, SANDAG
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Demographics and Housing Market
Housing Unit Supply and Demand
Source The London Group Realty Advisors, Inc.,
CA Dept. of Finance, EDD
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San Diego County Housing Market
New Construction and Condominium Conversions
366,266 74
159,810 48
Source The London Group Realty Advisors, Inc.,
MarketPointe
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Median Resales Price of Single Family Homes
1993 Through 2005
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San Diego County Housing Market
Cumulative Housing Unit Shortage
Housing Unit Shortage
Source The London Group Realty Advisors, Inc.,
EDD
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San Diego County Housing Market
Cumulative Housing Unit Shortage
Source The London Group Realty Advisors, Inc.,
EDD
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San Diego County Housing Market
New Multifamily Construction
Source The London Group Realty Advisors, Inc.,
Burnham Real Estate Services
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San Diego CountyApartment Market
Apartments sold, 2000-2005
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San Diego CountyApartment Market
Median Price per SF for Apartments Sold, 2000-2005
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Apartment Transactions
Capitalization Rates and Gross Rent Multipliers
(GRM)
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San Diego CountyOffice Market
Absorption in Square Feet, 2000-2005
Square Feet
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San Diego CountyOffice Market
Construction, 2000-2005
Square Feet
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San Diego CountyOffice Market
Office Units Sales, 2000-2005
Number of Office Units Sold
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Office Transactions
Sales Price Per Square Foot (/S.F.)
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Industrial Transactions
Historical Capitalization Rates (By Year)
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Retail Transactions
Retail Average Cap Rate
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San Diego County
Why Are We Growing?
Source SANDAG
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Manufacturing Employment Trends
Southern California Employment Markets
Source The London Group Realty Advisors, Inc.,
CA Dept. of Finance, EDD
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Service Providing Employment Trends
Southern California Employment Markets
Source The London Group Realty Advisors, Inc.,
CA Dept. of Finance, EDD
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Manufacturing Jobs
San Diego County
Source The London Group Realty Advisors, Inc.,
CA Dept. of Finance, EDD
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Service Providing Jobs
San Diego County
Source The London Group Realty Advisors, Inc.,
CA Dept. of Finance, EDD
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Service Providing Employment Trends
Southern California Employment Markets
Source The London Group Realty Advisors, Inc.,
CA Dept. of Finance, EDD
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Gary H. London 702 Ash Street Unit 101 San
Diego, CA 92101 glondon_at_londongroup.com