Intro Demographics Top 20 Employers Real Estate Community Government  Services Download a PDF of the full report For further information contact San Luis Obispo Chamber of Commerce Visitors Center 1039 Chorro Street San Luis Obispo, CA 93401 Telephone: 805.781.2777 Fax: 805.786.2769 Send email Websites: www.slochamber.org www.visitslo.com www.slo-business.com       2010 Community Economic Profile for the City of San Luis Obispo with additional information about San Luis Obispo County Prepared by the Research Department of the San Luis Obispo Chamber of Commerce Real Estate The residential real-estate market is currently swinging from a seller’s market to a buyer’s market.  Areas in San Luis Obispo County have experienced declines in median home prices, sales, and building. A decline of 6.1% is expected in pricing and 10.9% in sales. A housing recovery component will be reducing the inventory of new homes. Average monthly rent went up 11.4%. This increases the prospect of owning as opposed to renting; encouraging more buyers to enter the housing market, creating the opportunity for the market to correct itself. Average monthly rent for San Luis Obispo city One bedroom $1,056 Three bedroom $1,433 Overall $1,203 City Level Home Prices  City Median Home Price Arroyo Grande $550,000 Atascadero $384,750 Cambria $650,000 Grover Beach $400,000 Morro Bay $520,000 Nipomo $470,000 Oceano $371,500 Paso Robles $365,000 Pismo Beach $750,000 San Luis Obispo city $629,000 Average Sale Prices for Existing Single-Family Homes County Wide Median Home Price: $470,233 City of San Luis Obispo         Total Residential Units Permitted  42      Single Family Units   42      Multiple Family Units  0      Residential Building Value   $341.6 Million County of San Luis Obispo     Total Residential Units Permitted  6,880     Single Family Units   6,284     Multiple Family Units  596     Residential Building Value   $341.6 Million Fiscal Year Hotel/Motel Room Sales     City of San Luis Obispo   $50,641     County of San Luis Obispo   $238,741 Lodging Number of Hotels/Motels/Bed & Breakfasts in San Luis Obispo County: 170 Total Rooms Available in San Luis Obispo County: approximately 10,000; 3,000 in San Luis Obispo Total Hotel/Motel/Resort Rooms in Planning: 253 Number of Homes & Trailer Parks in County: 60 City Commercial Sites The commercial market is bleak. All the trends in this market are headed in the wrong direction and are not likely to change in the near future. A lack of credit and slowing economy will negatively impact commercial real estate. In each of the County's two largest markets, San Luis Obispo City and Paso Robles, vacancy rates have increased. Vacancy rates for industrial and retail properties have more than doubled in each market. While they have not doubled, vacancy rates in the office market have increased. Rising vacancy rates, lack of credit, and a weak economy have led to a slowdown in non-residential building. We forecast non-residential building to decline 27.8 percent in 2009 throughout the County. Only Pismo Beach and the unincorporated areas will see an increase. Rents in downtown San Luis Obispo are experiencing unprecedented upward pressure.  Downtown lease rates historically have been fairly stable with only incremental increases over the last fifteen years; however, there is a rapidly developing new rental paradigm. Costs associated with mandated earthquake retrofit of downtown SLO un-reinforced buildings, are triggering landlords to raise rents (in some cases precipitous increases) and forcing local retailers to find more affordable space. City Retail Sites Estimated Total Square Footage of Retail in San Luis Obispo: 4,100,000 square feet Overall Retail Vacancy Rate for San Luis Obispo County: 5.6% Overall Industrial Vacancy Rate for San Luis Obispo County: 6.1% Overall Office Vacancy Rate for San Luis Obispo County: 9.7% The asking rent can vary tremendously based on quality and size of the available space. Smaller (<5,000 square feet): +/- $4.50 per square foot Medium (5,000 – 10,000 square feet): +/- $2.50 per square foot Larger (>20,000 square feet): +/- $2.00 per square foot