jokes

ven though many San Diego sub-markets have thousands of square feet of vacant and otherwise available square feet of space to lease out, there other factors that come into play that make this market an undesirable one. For example, in recent years, these under-occupied buildings have been bought and sold, in some cases numerous times, for prices that defy reason. Every time a sale takes place, the county tax assessor takes note and adjusts the property tax to roughly 1.2 percent of the property's new sale price. An increase in property tax impacts operating expenses involved in running the property. It becomes necessary to charge higher rents to regain those costs and you are dumped with the burden of competing for tenants on price. John Kourbage

-Many building owners have floating interest rates that are trending upward and are very likely to continue to do so.

-Add the average 22-month period in which vacant space in downtown Sand Diego's office buildings remains unoccupied and one can see why building owners aren't sleeping all that well at night.

So if you are considering diversifying your investment portfolio by investing in