San Diego San Diego

San Diego is a national leader for medical office rental rates, according to a new report from CBRE. Medical office rents in San Diego average $35 per square foot, the fourth highest in the nation. The market was also fourth in terms of rental rate growth year-over-year. The strong rents aren’t hampering occupancy, either. The market is also a leader in vacancy, with the tenth-lowest vacancy rate in the market.

“In 2019, San Diego has been rated the fourth highest medical office rent market in the country,” Lars Eisenhauer, a VP at CBRE, tells GlobeSt.com. “Only four of the top 10 markets with the nation’s highest rents—San Francisco Bay Area, San Diego, South Florida and Greater Los Angeles—exceeded the U.S. average for medical office rent growth over the past year. The medical office vacancy rate fell to 5.2% in the second quarter, the lowest point since the prior peak in 2006. Overall average asking rents increased nearly 7.% over the year as the diminishing supply has fueled the increase in rent growth.”

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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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