San Diego’s office and industrial average asking rents displayed bullish year-over-year increases
February 18, 2019
- Key office market fundamentals including: historical low unemployment rate of 3.2 percent, robust venture capital funding, creative office redevelopments, record high investment transaction volume, and minimal speculative construction have pushed office asking rents to a record high. These positive market principles during 2018 led to a 9.6 percent year-over-year increase of average asking rents, as well as surpassing the last cycles peak by 8.4 percent.
- A few of the factors causing current rents to exceed the last cycle's peak of 2007 for low finish industrial by 27.6 percent include: record new inventory, stabilized vacancy, and high demand. Industrial asking rents saw a year-over-year surge increase of 10.2 percent, well over the average annual growth of 7.1 percent over the last five years. Locally and nationally industrial product has been the darling of commercial real estate in this cycle, due to the national burgeoning industries of e-commerce and 3PL, and on a local level craft breweries, defense, and life sciences.
Source: JLL Research