June 8, 2017
San Diego’s medical office occupancy increased in the first quarter of 2017, posting an increase of 28,144 square feet of positive net absorption, according to the latest research from JLL. The current overall San Diego County direct vacancy rate of 6.6% is 51% lower than in 2009, when it peaked at 13.6%.
The majority of the region’s medical office submarkets recorded minor movement in total occupancy. The Oceanside/ Vista submarket increased occupancy by 32,728 square feet, dropping into single-digit vacancy (9.8%) for the first time since 2008. The La Jolla/UTC/Sorrento submarket posted 20,146 square feet of positive net absorption.
The weighted average asking rental rate for MOB space continues to climb, with a current year-over-year increase of 4.9% for the county overall. The largest year-over-year increase was La Jolla/UTC/Sorrento, which increased 14.6%, and had the county’s highest average asking monthly rental rate at $3.93 per square foot, fully serviced.
For comments, questions or concerns, please contact Dennis Kaiser