San Diego Office Market
The average monthly asking rate was $3.40/SF, down 0.6% from a year ago. Net absorption was positive this quarter, posting 180,928 SF in gains, and year-to-date absorption turned positive with 165,517 SF in gains. Total vacancy climbed to 17.3%, up from 15.9% a year ago, as new deliveries continued to outpace demand. 408,154 SF delivered in new projects as current construction levels fell to 5.2 MSF. 1.7 MSF of new product has delivered year-to-date. Sublease availability remained stable at 4.2%, representing 3.2 MSF of available sublease space.
San Diego Industrial Market
The average asking rent fell to $1.48/SF, down 4.5% over the past year as climbing vacancy impacts leasing market dynamics. Net absorption posted 68,441 SF in losses this quarter, bringing year-to-date total to negative 341,512 SF. Vacancy climbed to 6.2%, up from 4.4% a year ago. Sublet availability reached an all-time high of 3.0 MSF, up from 2.4 MSF a year ago and 1.1 MSF two years ago. Construction levels are declining as developers scale back the pipeline. 573,124 SF in new supply delivered this quarter, leaving 2.2 MSF underway, the lowest level of construction activity since 2020.
Download San Diego Industrial Market Report 3Q24