San Diego Office Market Report (Q1 2021)29 Apr 2021
Long term optimism is fueling San Diego’s office sector development.
The San Diego market is preparing for a post-pandemic future. New construction, renovations and urban Infrastructure improvements that were already underway prior to the pandemic, will aid in the long-term resilience that the region will now need. Economic strength will be served by previously existing efforts to improve blighted areas, expand mass-transit rail lines, increase affordable housing, and attract high-tech businesses to the region. Disruption to office space requirements and traditional office functions is an unavoidable reality that businesses are evolving with, particularly as real estate transaction decisions must be made. San Diego is no exception to this disruption in 2021, despite its strong fundamentals.
- 7.2% San Diego County Unemployment Rate as of February 2021
- (449,760) SF Negative Net Absorption Current Quarter
- 13.3% Total Vacancy Rate increased from Q4 2020
- 1,936,262 SF Under Construction - Current Quarter
- $3.04 PSF Asking Rental Rate - Weighted Average