Exciting Times Ahead for San Diego’s Skyline

Brant: “I’m very excited about the two largest office developments planned for Downtown: Manchester’s Pacific Gateway on the water’s edge in the west, and L2HP’s Makers Quarter in the burgeoning East Village. These and a handful of smaller projects in the pipeline will really accelerate the transformation of Downtown.”

SAN DIEGO—With two large office developments and a handful of smaller projects planned for Downtown San Diego, the submarket is gearing up for major skyline office leasing activity, JLL’s senior research analyst Josh Brant tells GlobeSt.com exclusively. “In our update on the San Diego skyline this year, we discovered some trends that were in line with the national average and some that did not correspond to the trends that we’re seeing on the national level.”

Brant says rental rates among the skyline offices are still on the rise, and rates are 9.7% higher than the first quarter of 2015, but rent growth has started to moderate. “Unlike many of the skyline markets across the US, the average asking rental rate for the skyline office market has not surpassed 2007’s peak level. But, the cream-of-the-crop rental rates are at or near all-time highs. Earlier this year, a full floor was leased at DiamondView Tower, one of the most desirable offices in the county, at a rate more than 50% higher than the class-A average for Downtown.”