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LEASING RISES
Several significant renewals boosted second-quarter activity. However; in the four most recent quarters, deal volume totaled 5.0 million square feet (msf) in the four most recent quarters, well below the long-term average of 6.6 msf.
AVAILABILITY RATE INCHES HIGHER
The region’s overall availability rate inched up by 20 basis points, increasing to 15.2%. In contrast, the Class A rate ticked down by 40 basis points to 16.8%.
RENT STABLE
Overall asking rent was essentially unchanged, ticking down by 0.1% to $32.54 ($2.71/sf monthly). The Class A average increased by 0.7% to $36.78 ($3.07/sf monthly).
SALES INCH LOWER
Office property sales during the last six months (through May 2018) totaled $1.8 billion, a 14% decrease compared to the previous six-month total of $2.1 billion.
"With new construction still under control, and very limited supply of quality blocks of space, larger tenants are increasingly opting for renewals. Smaller and mid-sized firms are more mobile, and continue to seek out options across the market, including in Downtown San Diego."
Savills Studley Research