SAN DIEGO—San Diego can satisfy the demand for quality office space long term “without a doubt,” since the city's lifestyle of work hard/play hard has put companies on the world platform as a hub to have their businesses located here, JLL's senior research analyst Patrick Ashton tells GlobeSt.com. According to a recent report from the firm, healthcare, life-science, scientific and technical lease deals have dominated the office market in San Diego this year, with these deals combined accounting for 53% of the total leasing activity in San Diego so far this year.

Northrop Grumman and MedImpact have been expanding, driving most of the office demand in the large-headquarters office sector. Five tenants in the market have signed for spaces greater than 100,000 square feet, and leasing activity remains robust in the market, with office-space deals signed so far totaling over 4.9 million square feet.

We spoke with Ashton about how San Diego is catering to its dominating office industries, what is attracting these industries to the market and how the region can satisfy office-space demand long term.

GlobeSt.com: What is San Diego doing to cater to its dominating office industries?

Ashton: San Diego landlords have been repositioning buildings with more creative-office elements. We have been seeing the more industrial-style build-outs to more modern as well. For example, the Aventine building that we are currently located in has added the “Patio” coffee bar. More amenities and new upgrades where people can enjoy the open space with colleagues and clients makes for a more appealing workplace environment.

GlobeSt.com: Why are these industries in particular attracted to this market?

Ashton: San Diego historically has established itself on the map as a research-and-development hub, with the Salk Institute and UCSD playing large roles in that. Industries are attracted to the well-educated talent pool and the high quality of life in the area. The city of San Diego is taking steps in the right direction appealing to top companies by implanting the extension of the Trolley Line that will connect to Downtown San Diego to have several stops through UTC and UCSD.

GlobeSt.com: Can the region satisfy these industries' demand for space in the long term?

Ashton: Without a doubt, San Diego can entertain these industries in the long term. The city's lifestyle of work hard/play hard has put companies on the world platform as a hub to have their businesses located here. If you compare San Diego's rental rates, educated workforce and cost of living on a national level, it is evident that companies can expect to save and grow their presence in this vibrant market.

GlobeSt.com: What else should our readers take away from this snapshot?

Ashton: San Diego's aerospace/defense, healthcare and life-science segments have seen tremendous growth in the last several years with the larger space users. Meanwhile, technology firms are seeing robust activity in the smaller to midsize range. As more technology companies enter the market, we can expect to see their presence grow in the near future. UC San Diego and San Diego State University have invested heavily in their campuses to attract some of most talented students nationally and internationally. As a result of this, many companies are expanding and entering the market, ensuring that they have a strong presence in San Diego.

GlobeSt.com: What is San Diego doing to cater to its dominating office industries?

GlobeSt.com: Why are these industries in particular attracted to this market?

GlobeSt.com: Can the region satisfy these industries' demand for space in the long term?

GlobeSt.com: What else should our readers take away from this snapshot?

Instant Insights /

Can SD Satisfy Quality Office-Space Demand Long Term?

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