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News release

SAN DIEGO, CA

Jones Lang LaSalle Releases Q3 San Diego Office Market Statistics and Activity Reports

Government shut down and health care uncertainty could have impacts


SAN DIEGO, October 4, 2013 – Jones Lang LaSalle has released its San Diego Office Insights and Market Statistics Research Report for the third quarter of 2013.

The reports note a slight uptick in leasing activity, especially in the popular submarkets of UTC and Mission Valley, which outperformed the rest of the market during the quarter.  UTC saw the county’s lowest direct vacancy rate at 7.1 percent.  According to the report, though vacancy has dipped into single digits in the most popular submarkets, the market will need to see more sustained leasing activity and widespread vacancy decreases before significant rental growth will occur.

Click here to review the full report.

“We are seeing, albeit small, slow and steady gains in the San Diego office market,” stated Richard Gonor, Executive Vice President with Jones Lang LaSalle. “The local unemployment rate has dropped and several industries are charting significant employment growth. However, the government shut down and healthcare uncertainty could affect some of the positive recovery we are seeing as tenants may choose to stay on the sidelines until the future becomes clearer.”

According to the report, rents are showing a marginal increase while incentives such as free rent and tenant improvement packages are diminishing. Tenants more readily continue to look at options outside of their current office space, with renewals making up only 36 percent of Q3 2013 signed leases.
As many of the top-performing suburban markets continue to tighten, tenants are left with fewer options to meet their space needs. Competition for Class A product remains high and with decreasing vacancies fueling rental rate increases, the opportunity for speculative development may be on the horizon.

A complete review for Q3 2013 of market statistics by submarkets and building class can be found here.

Jones Lang LaSalle is a leader in the San Diego commercial real estate market. The firm employs approximately 165 of the area’s most recognized industry experts offering services in brokerage, capital markets, facility management and project development services. In 2012, the San Diego team completed 4.58 million square feet in lease transactions, directed $57 million in project management, currently leases 10.5 million square feet and has 5.5 million square feet under management.

About Jones Lang LaSalle
Jones Lang LaSalle (NYSE:JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. With annual revenue of $3.9 billion, Jones Lang LaSalle operates in 70 countries from more than 1,000 locations worldwide. On behalf of its clients, the firm provides management and real estate outsourcing services to a property portfolio of 2.6 billion square feet and completed $63 billion in sales, acquisitions and finance transactions in 2012. Its investment management business, LaSalle Investment Management, has $46.3 billion of real estate assets under management. For further information, visit www.jll.com.

For more news, videos and research resources on Jones Lang LaSalle, please visit the firm’s U.S. media center webpage. Bookmark it here: http://www.us.am.joneslanglasalle.com/UnitedStates/EN-US/Pages/News.aspx.