San Diego office asking rents continue to accelerate throughout the metro
The San Diego office market nearly had double digit annual rent growth in 2018 and approximately 20 percent growth in the last three years.
March 19, 2019
- The San Diego office market nearly had double digit annual rent growth in 2018 and approximately 20 percent growth in the last three years. Market dynamics have been positive for almost all the office submarkets average asking rent premiums over the last 3 years. All the core submarkets with over 2 million square feet of inventory has seen an average of 13.6 percent rent growth over the last 36-months and an average of 8.8 percent increase over past 12-months.
- Two of the standout submarkets with recent rent growth include Mission Valley and Eastgate. Mission Valley which is located in the Central Suburban cluster had the office market’s largest speculative delivery in 2018 for a total 340,000 square feet with asking rents quoted at $3.75-4.25 +Electric pushing average rates up dramatically. Eastgate has been an active market over the last three years with companies such as Illumina, AbacusNext, and ServiceNow growing their footprint. The life sciences and technology companies expanding into Eastgate made it the tightest core submarket at 5 percent direct vacancy pushing asking rents to escalate.
Source: JLL Research