Insight

Market Trend: San Diego's Office Deliveries, Construction and Inventory

November 15, 2013


By Justin Sumner

During the third quarter 2013, one office building totaling 250,000 square feet was completed in the San Diego market area. 

This compares to two buildings totaling 306,358 square feet that were completed in the second quarter 2013, one building totaling 127,373 square feet completed in the first quarter 2013, and 309,715 square feet in six buildings completed in the fourth quarter 2012. 

There were 526,292 square feet of office space under construction at the end of the third quarter 2013. 

Some of the notable 2013 deliveries include: 10160 McKellar Ct., a 250,000-square-foot facility that delivered in third quarter 2013 and is now 100% occupied, and FBI San Diego, a 248,882-square-foot building that delivered in second quarter 2013 and is now 100% occupied. 

The largest projects underway at the end of third quarter 2013 were La Jolla Commons Tower II, a 414,575-square-foot building with 100% of its space pre-leased, and Latham & Watkins, a 70,000-square-foot facility that is 100% pre-leased. 

Total office inventory in the San Diego market area amounted to 113,194,072 square feet in 5,376 buildings as of the end of the third quarter 2013. The Class-A office sector consisted of 31,941,830 square feet in 253 projects. Within the Office market there were 344 owner-occupied buildings accounting for 12,698,248 square feet of office space. 

This trend is compared to U.S. National Office deliveries and construction, which saw 244 buildings totaling 12.2 million square feet complete construction, with an additional 83.8 million square feet of office space still under construction at the end of the third quarter. A 1.05 million-square-foot facility at 250 W. 55th St. in the New York City market delivered, while the 3.04 million-square-foot One World Trade Center in New York City is still underway. Total office inventory in the U.S. market totaled 10.34 billion square feet in almost 497,000 buildings at the end of the third quarter 2013, including almost 20,000 owner-occupied buildings accounting for 876.2 million square feet.