The Tech Industry’s Big Impact on San Diego Real Estate

San Diego

San Diego is becoming one of the top technology hubs in the country—and it is having a big impact on the market’s office real estate activity. In San Diego, technology sector has accounted for 18% of total office leasing in the market in 2019, just behind life sciences, the industry the market was known for. Over the last decade, technology presence has increased steadily, averaging 16% of total leasing activity in the market.

“Because the tech sector has been such an important driver of growth in this business cycle, rents have increased faster in tech markets than in the rest of the U.S. metro areas and most substantially in tech critical cities such as San Diego,” Jolanta Campion, research director of San Diego for Cushman & Wakefield, tells GlobeSt.com. “For occupiers, any sharp increase in rents may make these markets less attractive.”