Paso Robles Retail Space and Economic Forecast

Paso Robles Retail Space and Economic Forecast

Paso Robles retail space is becoming an increasingly valuable holding. As the Paso Robles and San Luis Obispo economic forecasts point towards a gradual recovery in the region, retail investments stand to gain from increased consumer spending and increased tourism rates in the region. The 2011-2012 Economic Forecast for San Luis Obispo County was presented by Beacon Economics, and the summary of their research has been articulated by the Paso Robles Press. While their projections relay cautious optimism, Paso Robles retail space may soon become an increasingly attractive investment opportunity.

Many of the variables which point to a possible increase in retail prospects were presented by Regional Researcher Brad Kemp, a Director of Beacon Economics. His findings covered the past and future directions of the local housing market, the unemployment rate, tourism metrics, and overall growth estimates for both Paso Robles and the County of San Luis Obispo.

According to Kemp, San Luis Obispo County is accelerating out of the recession faster than many other counties in California and the Central Coast. The region has one of the lowest unemployment rates in the state, and the tourism industry appears to be making a solid comeback with the sector of leisure and hospitality posting strong numbers. When combined with increased consumer spending in the county, Paso Robles retail space appears to be well positioned to benefit from some of the strongest growth sectors highlighted in the forecast. The California Department of Finance has shown that Paso Robles has witnessed the largest population growth within San Luis Obispo County, making the city a particularly attractive investment for retailers.

As a result, taxable sales have increased over the past two years, and the potential for further growth in the future is high. Yet a disconnect between the potential value of Paso Robles retail space and recent retail selling points has developed, such that future investors may be able to find retail space below the true market value. The San Luis Obispo Chamber of Commerce estimates the Overall Retail Vacancy Rate to be an elevated 5.4%.

It appears that past sentiments regarding Paso Robles retail space have yet to catch up with the current bullish market trends. With an economic forecast pointing towards a gradual recovery for Paso Robles, and with key metrics pointing towards future strength for Paso Robles retailers, Paso Robles retail property is an increasingly attractive investment opportunity.