SD Office Rent Growth Outpaces National

Ashton: “With less supply and consistent demand over the last five years, the asking rents have steadily increased and have now even surpassed the last peak (2007) in some submarkets.”

SAN DIEGO—Like the national average, the San Diego office market has seen rising asking rental rates since 2012, but the velocity of this increase has now surpassed that of the national average, according to a report from JLL. National rents increased 3.6% from the end of 2016 to the end of 2017 and 23.8% since 2010, while San Diego saw a 3.8% year-over-year increase and a 25.9% increase since 2010.

Vacancy has also improved over the national average. The report finds that national direct vacancy for office space rose 20 basis points, while San Diego’s dropped 40 basis points from 2016 to 2017, while average asking-rent growth was very similar to that of the previous year.