San Diego office market report

Q2 2023

The San Diego office market fared better than neighboring markets back in 2021 as availabilities were on a decline due to the rapid expansion of the life science’s industry. Since then, the market is experiencing an increase in available sublet space that is nearly double what was available back in 2021. The tech and biotech industry, the main drivers of office space occupancy in San Diego, has been experiencing significant layoffs, causing some occupiers to forego their current office footprint.
4.09 msf

Inventory

In the second quarter of 2023, San Diego had 4.092 million square feet of new office construction underway. This is up from last year, where office construction was at 3.9 million square feet.
-422k sf

Net Absorption

Second quarter absorption checked in with a total of 422,933 square feet of negative absorption, continuing the trend of downward absorption from last quarter’s 173k sf of negative absorption.
$37.28 psf

Asking Rent

The asking lease rate for office space in San Diego registered at $37.28 a square foot on an annual basis. This is up $0.27 from last quarter.
16.4%

Availabilities

Currently, 16.4% of the total office market, or 19.48 million square feet of the total 95.2 million square feet inventory in market, is available for lease in San Diego.
12.7%

Vacancy

Total vacancy this quarter registered 12.7%, where 11.2% was direct and 1.5% was sublet.
$438.62 psf

Investment Sales

Since the beginning of the year, sale price per square feet has reached $438.62, with a total sales volume of $390,405,447.
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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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