Are Certain Office Types Growing Scarcer in OC and SD?

Ashton: “Sorrento Valley, with a decent amount of older-generation flex buildings, was the first to convert properties into creative offices for the smaller to midsize range; now we are starting to see this happening on a larger scale.”

SOUTHERN CALIFORNIA—With options for large blocks being few amid increasing demand in San Diego and class-B making up the bulk of absorption in San Diego, office tenants seeking this space might have some trouble finding it. According to a recent report from NKF, in San Diego, large-block space options are few, and demand will likely increase with growing venture-capital and private-equity funding in the market.

JLL reports that in San Diego, converted and retrofitted buildings are helping to satisfy big-block demand in the I-15 Corridor and North County West clusters. But tenants such as WeWork, signed for 43,032 square feet in UTC in Q4 2017, are looking to expand their presence in the region, and it’s uncertain if they will be able to find the space they need to do so.