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LEASING INCREASES
Several leases exceeding 50,000 sf were completed. Smaller and mid-sized firms also remained active. Quarterly deal volume totaled 1.5 million square feet (msf). Tenants have leased 5.2 msf in the four most recent quarters.
AVAILABILITY RATE SPIKES
The region’s overall availability rate spiked by 190 basis points to 18.2%. The addition of some larger blocks of space boosted availability rates in the Central Suburban and Hwy 78 Corridor submarkets.
RENT UP SLIGHTLY
Overall asking rent ticked up by 0.5% to $32.69 ($2.72/sf). The Class A average rent rose by 1.6% to $37.37 ($3.11/sf).
SALES UP
Office property sales during the first seven months of the year totaled $1.0 billion, a 13.7% increase compared to the first seven months of 2017.
"Tenants are pushing into emerging microdistricts as space options dwindle and rents rise in areas such as La Jolla, Mission Valley and Del Mar Heights. Sorrento Mesa and surrounding areas have captured additional demand. Meanwhile, interest in Downtown San Diego continues to build."
Savills Studley Research