SAN DIEGO-San Diego's overall vacancy rate decreased 100 basis points during 2013, to 14.2%, according to CBRE Econometric Advisors. Although 2013 was a strong year overall, tenants seemed to be skeptical about the economy during the fourth quarter and did not pursue as many deals as they had previously.
But one more thing that is an increasing priority for San Diego tenants is parking. According to the firm's recent San Diego report, parking is an issue that has become a main concern. Requirements for parking at 5/1,000 are continuing to increase.
According to CBRE, "landlords who are able to offer this have been able to charge a premium." In addition, some major tenants are even considering 10/1,000 parking, says the firm, "as they take advantage of the efficiencies of creative office space to maximize their space usage and promote a collaborative environment."
In other San Diego research news, the firm says that in office-using industries, growth of 3.4% is projected through year-end 2014. In late 2014, office employment should surpass the 2006 peak and continue to grow at an average annual rate of 2.4% for the next five years.
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