2022 Q4 Office San Diego Region
Key Takeaways
- San Diego County achieved significant net absorption equating to over 862,000 SF in 2022, continuing for a second year to restore demand and fill tenant vacancies created during the COVID pandemic that took hold in 2020.
- Countywide overall vacancy decreased 9 basis points (BPS) in Q4,bringing increasing vacancy to 12.45%.
- Countywide asking rental rates increased slightly in Q4 to a monthly "full service" average of $3.05/SF across all classes and $3.55/SF for Class A space. Rents remained relatively flat for the year.
San Diego office market on a positive note in Q4
San Diego County experienced modest demand throughout 2022 notwithstanding challenging economic conditions locally and nationally. San Diego County has been challenged by many of the issues that most of the country is coping with such as inflation, housing prices and rents, and economic uncertainties. But the post-pandemic recovery has seen increased employment across most local industries and especially in those that employ office workers. This has translated into 1.2 million SF of net absorption in the last two years, effectively occupying two-thirds of the space lost since the beginning of the pandemic.
