Snapshots

2018 had the highest sales volume across all property types in San Diego

2018 sales activity was robust, exceeding the last five year’s totals for the medical, flex/lab, industrial, and office property types.

April 02, 2019
  • 2018 sales activity was robust, exceeding the last five year’s totals for the medical, flex/lab, industrial, and office property types totaling $5.2 billion and with an overall average price per square foot (p.s.f) of $298. Last year p.s.f average was the highest in five years signifying investors are confident in the market fundamentals.
  • The medical office sales market was active in 2018 with a record sales volume of $356 million, nearly half of which was comprised of two UTC sales: University Pacific Centre and The Campus on Villa La Jolla. The average cap rate across medical comps was 6.0%, and the average p.s.f. was $426. Office transactions had an average sales price of $292 p.s.f. in 2017, a year later, the average sales price soared to $345 p.s.f. Large transactions have also increased in 2018, having seven sales over $100 million including Starwood’s 12-building portfolio sale for $350 million, StoneCrest in Kearny Mesa for $100 million, and the Sunroad Corporate Centre in UTC for $180 million.
  • The low finish industrial product has record rents and stabilized historical low vacancy producing two of the largest portfolio sales in recent history, with RAF Pacifica Group selling a 12-building portfolio totaling 1 million square feet and Stockbridge Capital selling another 14-building set totaling 700,000 square feet. With strong tenant demand for all property types, we expect direct vacancy to decrease and average rents to increase in 2019.The culmination of these positive market dynamics further validates the bullish investor outlook in San Diego.

    Source: JLL Research, CoStar"

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