October 21, 2019
Cushman & Wakefield’s 3Q 2019 report reflects ongoing stability in San Diego’s office sector. Overall office vacancy came in at 14% for the quarter, with direct vacancy at 11.8%. Net absorption did come in at a marginally negative 73,000 square feet; nonetheless, despite the shallow dive the report indicates 2019 still remains at a very solid level with a net positive 575,000 square feet year-to-date, as the growth cycle continues.
Cushman & Wakefield’s Brett Ward says, “There are still several large occupancies in the traditional and creative office segments as well as the thriving life sciences sectors, expected to transpire by year-end and into 2020. In addition, tenant demand still remains strong with four million square feet of requirements potentially landing over the next 24 months—though not all will transact by then. We expect occupancy to close the year on a good note and push our annual growth figures even higher countywide.”
Indicative of demand for quality office space, the Class-A segment has racked up more than 900,000 square feet of growth year-to-date in San Diego.
The overall average asking rent for office space in San Diego is now $3.26-per-square-foot on a monthly full service basis, up 7.6% from a year ago.
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