Last year, San Diego’s medical office market built on momentum that began in 2020. In 2021, medical office absorption was up 77% with medial office users taking 280,000 square feet of space, according to research from JLL. The positive absorption helped push medical office vacancy down two basis points to 5.8%, the lowest levels since 2006.

The leasing activity has put upward pressure on medical office rents, which have increased more than 5% in the last 12 months to $4.53 per square foot for class-A asking rents, $3.90 per square foot for class-B rents and $3.04 per square foot for class-C asking rents. Vacancy rates also show significant variation between product quality. Class-A product has the lowest vacancy rate at 3.7%, showing that there is a flight to quality. Class-C spaces, on the other hand, have an 8.1% vacancy rate.

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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 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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