San Diego office market reports

Q1 2022

The San Diego office market continues to experience a positive increase in touring activity at a slow but steady pace to start the year from tenants that had previously held off their office leasing search due to the COVID-19 pandemic. Employers are now eager to capitalize on the generous concession packages and flexible terms offered by landlords to accommodate their return-to-work policies.

95.4 msf

Inventory

The San Diego office market has consistently added approximately 1 million square feet on an annual basis since 2018 to their inventory. An additional 4 million square feet is projected to be delivered in the coming years as developers continue to expand on new developments throughout the various submarkets.

8.7 ksf

Net Absorption

San Diego has experienced more than 1.2 million square feet of positive absorption over the past 4 quarters as companies continue to expand on their square footage needs. At the end of Q1 2022 net absorption rate posted 8,721 sf of positive absorption.

$3.12 psf

Direct Asking Rent

Average Full Service asking rents have continued to increase each quarter since Q1 2021 after remaining flat in Q3 and Q4 2020 during the pandemic at $2.93 psf. Lease rates were the highest in the North Central County submarket, with an average asking rate of $4.16 psf for Class A office space.

17 msf

Availabilities

The total available office spaces remain at just a little over 17 million sf for the quarter. The existing direct availabilities have remained stagnant since Q3 2021 at 15 million sf, while the sublease availabilities increased by 300 thousand sf for a total of 1.9 msf at the end of Q1 2022.

12.9%

Vacancy

The overall vacancy decreased by 30 basis points in Q1 and has continued to decline since Q2 2021. The direct vacancy rate and the sublease vacancy rate have decreased to 12% and 0.90% of the total market inventory, respectively compared to the Q1 2021 total vacancy rate of 13.4%.

$171 mm

Investment Sales

The sales volume in San Diego decreased by 76.7% since the end of last year, while the price psf decreased 39.5%. The average sales price in Q1 2022 was $262 psf, a decrease of 36.3% compared to Q1 2021 when office buildings were trading for $411.98 psf.

Download San Diego Office Insight report

Your source for the latest San Diego office market reports

Get in-depth office market reports and insights from commercial real estate experts in the Greater San Diego area. Avison Young advisors look at San Diego commercial real estate activities and the latest San Diego statistics to provide you expert market research on San Diego's office properties.

Explore different topics like the latest office market pricing trends and analysis of San Diego's current office real estate market conditions. Gain a better understanding of San Diego’s office real estate outlook and stay ahead of current office space trends. Make smart decisions when it comes to investing in office properties in San Diego's competitive office real estate market. Avison Young is your trusted source for commercial real estate office market insights in San Diego.

The dashboard was delivered through AVANT by Avison Young: leveraging real-time data and analytics to make cities and location-based decisions more transparent and efficient. Learn more about AVANT.

Get the latest San Diego office market reports right in your inbox