Q3 2018 Market Report
Industrial
Over the third quarter of 2018, the office market in San Diego slightly increased rental rates from $2.65 in the second quarter to $2.66 SF, and experienced a negative absorption of 335,313 SF.
The average vacancy rate increased to 9.7% as new construction continues to be delivered, including AMPR&SAND’s 163,000 SF location that is 32% occupied along with the 156,000 SF Koman
Family Pavillion that is now 100% occupied.
Notable projects that are still underway include the MedImpact-Watermark Building 2, a 158,994 SF building with 100% of its space pre-leased, and 9625 Towne Centre Dr. - Building 1, a 150,000 SF is 100% pre-leased.
Office
In the third quarter, the overall San Diego industrial market had a net absorption of positive 445,304 SF for the third quarter, while vacancy decreased to 4.5% from 4.4%, and monthly rental rates increased from $1.10 to $1.13 per square foot.
San Diego’s growing industrial market is supported by the biotech and life science industries along with the expansion of the defense industry. Despite the modest supply of space, more industrial buildings are being converted to flex, mixed-use, and creative office spaces. This supply along with a steady demand has kept vacancies low even as construction rises.
Over the third quarter of 2018, the office market in San Diego slightly increased rental rates from $2.65 in the second quarter to $2.66 SF, and experienced a negative absorption of 335,313 SF.
The average vacancy rate increased to 9.7% as new construction continues to be delivered, including AMPR&SAND’s 163,000 SF location that is 32% occupied along with the 156,000 SF Koman
Family Pavillion that is now 100% occupied.
Notable projects that are still underway include the MedImpact-Watermark Building 2, a 158,994 SF building with 100% of its space pre-leased, and 9625 Towne Centre Dr. - Building 1, a 150,000 SF is 100% pre-leased.
Office
In the third quarter, the overall San Diego industrial market had a net absorption of positive 445,304 SF for the third quarter, while vacancy decreased to 4.5% from 4.4%, and monthly rental rates increased from $1.10 to $1.13 per square foot.
San Diego’s growing industrial market is supported by the biotech and life science industries along with the expansion of the defense industry. Despite the modest supply of space, more industrial buildings are being converted to flex, mixed-use, and creative office spaces. This supply along with a steady demand has kept vacancies low even as construction rises.