Volume of ground-up and redevelopment office projects in San Diego “catching up” to historical decade cycles
This cycle, 62 percent of San Diego’s office “development” over the last 10-years has been accounted for by redevelopment projects
December 11, 2019
- This cycle, 62 percent of San Diego’s office “development” over the last 10-years has been accounted for by redevelopment projects, and 38 percent have been ground-up construction. San Diego’s limited land supply and the fact that construction costs have out-paced rental rates for most of this cycle have kept ground-up developers at bay.
- Although ground-up office construction this cycle has been most prevalent in the central submarkets; renovations of older vintage buildings throughout the county have been plentiful. Since 2010, there has been a total of over 9M s.f. of redeveloped office buildings that have been reintroduced with a higher building class or as creative office product.
- As rents in multiple submarkets surpass peak levels and the life science markets thrive, ground-up construction has seen a recent resurgence; by 1.5M s.f. of under construction and completed office buildings in the last 12-months.
Source: JLL Research