San Diego office insight - Q2 2018

Large-block companies in expansion mode are mostly staying close to their current submarket locations. For example, companies expanding and relocating include AbacusNext (UTC/Eastgate for 65,000 s.f.), Greatcall Inc. (Del Mar for 56,000 s.f.), and Nortek Security and Control (89,000 s.f. in Carlsbad). All three software-related companies relocated and expanded in their current submarkets. Largest Q2 leases involved the Bank of Internet consolidation for 96,000 s.f. in UTC and American Specialty Health Plan renewal for 200,000 s.f. We expect to see this trend continue throughout the market for larger tenants. Landlords are strategically offering major concession and amenity packages to retain existing and expanding tenants.

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