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Market Report

San Diego Office Market Report

4Q 2022

Spotlighted by Suburban Leasing, Local Office Demand
Far Exceeds Regional Counterparts

Metro's tech hub status elevates. Following a historic stretch of demand, San Diego's office sector entered the second half of 2022 in a position of strength. During the past year ended in June, tenants absorbed a net of nearly 3.2 million square feet across the county, the largest four-quarter tally on record — one that exceeded the combined absorption total for the other three Southern California markets. Leasing by biotech and life science firms remains the primary driver of office demand; however, big tech is also playing a role. This June, Google signed on for a sizable floorplan in Sorrento Mesa, while Amazon leased more than 120,000 square feet earlier this year in nearby UTC. Apple has been extremely active since last August, committing to roughly 780,000 square feet across five buildings. Preliminary leasing data for the third quarter shows these trends continuing, with a list of notable commitments executed, highlighted by Crinetics Pharmaceuticals signing on for 94,000 square feet.
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