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Strong medical office demand is outpacing new construction in San Diego—creating a tight supply and fueling leasing activity for class-B product. As a result, class-B medical office spaces are getting leased at record rents while vacancy is decreasing. According to research from JLL, class-B asking rents are up 6.4% to $3.60 per square foot. Class-A rents, by comparison, are at $4.29, with new product being absorbed quickly.

“Class-A space is incredibly tight right now, so class B medical office buildings are reaping the benefits, filling vacancy at all-time-high rents,” Chris Ross, EVP at JLL, tells GlobeSt.com. “Conveniently located buildings continue to attract the most activity across all classes, and fully improved space is usually the first to go.”

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.

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