Occupiers adopting a hybrid work model in San Diego are favoring smaller office requirements
Total Leasing activity by size range in San Diego comparing first half of 2022 and 2023
Many occupiers in the San Diego market have made the decision to right-size their office footprint due to the adoption of hybrid work schedules, driving the demand for less space. The Pandemic has created a shift in office utilization as return-to-office strategies show smaller leases account for the largest share of activity. The first half of 2023 reported over 1.4M square feet of total lease activity less than 5,000 square feet which is nearly 135% higher than spaces leased over 5,000 square feet. Market share for demand under 5,000 square feet shows occupiers conservative approach when considering the size of their office requirements favoring smaller footprints witnessed in leasing data obtained for the first half of 2022 and 2023.
August 25, 2023
