Office Market Has Weak Quarter, Leasing Expected To Increase

SAN DIEGO-While recovery is on the horizon for San Diego’s office market, the first quarter gave the year an uninspiring start. After two years of healthy growth, with record-breaking leasing activity in 2010 and net absorption of 860,000 square feet in 2011, the office market hit a flat spot in the first quarter of 2012, according to a report just released by Jones Lang LaSalle.

However, the market is showing signs of recovery with declining vacancy rates, an increase in active requirements and improved transaction fundamentals (longer terms, higher rents and fewer lease concessions) vs. what was seen in 2009/2010, executives from Cushman & Wakefield tell GlobeSt.com.