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LEASING DECREASES
Tenants have leased 4.7 million square feet (msf) in the four most recent quarters, well below the long-term average of 6.6 msf, and down by 2.1% from the last quarter of 2017, totalling 4.8 msf.
AVAILABILITY RATE DECLINES
The region’s overall availability rate dipped by 60 basis points to 14.8%. The Class A rate fell by 10 basis points, starting the year at 16.7%. Overall and Class A rates both fell by approximately 200 basis points year-onyear.
RENT RISES
Overall asking rent inched up by 0.2% from the prior quarter, rising to $2.74 ($32.93/sf annually). Rent has fallen by 3.3% year-onyear, though.
SALES INCREASE
Office property sales during the last six months (through February 2018) totaled $1.5 billion, a 75% increase compared to the previous six-month total of $877 million.
"San Diego’s office and economy continue on a steady growth path. Leasing has not been off the charts, but with one of the most restrained development pipelines in the nation and sustained demand from healthcare, biopharm and software firms, larger tenants seeking quality blocks of space in prime locations face challenging conditions."
Savills Studley Research