San Diego office market report

Q3 2024

The San Diego office market continues to experience leasing difficulties to close out Q3 2024. With only 1,035,174 square feet of space leased, owners continue to struggle to fill vacant spaces in their buildings. Vacancy remains high for the San Diego market, with an average of 13.3%. Office owners are now tasked with enticing tenants to fill spaces through additional amenities, lower rents, and other appealing options.
74,399 sf

Net absorption

After 550K square feet of negative absorption in Q1 2024, Q3 maintained positive absorption of 74K square feet. This follows a very high Q2 absorption of 230K square feet.
$34.97/sf

Asking rents

San Diego office direct asking rents have dropped to an average of $34.97/SF, as owners make an effort to entice office occupiers to fill their vacant spaces.
16.4%

Availabilities

San Diego’s direct office availability sits at 16.4%, about 5% higher than the pre-pandemic rate of 11.5%. As spaces remain empty, the leasing environment continues to struggle.
1.035m sf

Leasing activity

Leasing activity in the San Diego office market continues to slow down, with only 1,035,174 total square feet of space leased. Of this, 126,987 square feet was sublet space, indicating that tenants are giving up space to explore other options in other Southern California office submarkets.

13.3%

Vacancy

Vacancy throughout the San Diego office market is at an all-time high, averaging 13.3%. Class A office space has an average vacancy rate of 16.4%, while Class C stands at 6.3%. Although these rates are relatively high, the San Diego office market has fared better than other Southern California markets.

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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.

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