San Diego Office Market Report
Demand for Space in Biotech Centers and Coastal
Office Hubs Swells, Producing Wave of Absorption
County is a regional standout. San Diego led all West Coast markets in office performance over the past four quarters, as tenants absorbed nearly 3.2 million square feet of space and local rent growth exceeded 6.0 percent. The metro's burgeoning biotech sector is supporting mid- and large-scale leasing in locales with clusters of higher-quality space. Spanning the past 12 months, a combined 2.1 million square feet was absorbed across the North San Diego and I-5 Corridor submarkets. This demand compressed vacancy in both areas to record lows and supported above-average rent gains. Sparse near-term deliveries in each locale suggest notable demand for available space will persist in the coming quarters, enabling San Diego to maintain its standing as the regional leader in office demand.