Why San Diego Office is Still a Bargain for Tenants

Olson: “We do not have as large a corporate sphere as Silicon Valley, which reduces inventory and makes real estate more costly moving into those markets.”

SAN DIEGO—The San Diego market doesn’t have as large a corporate sphere as Silicon Valley, L.A. or OC, which means demand is lower, keeping office rental rates down; but there are also untapped opportunities for office tenants here, JLL SVP Tim Olson tells GlobeSt.com. According to the chart below from JLL, San Diego office rents are the lowest among key California markets.

The firm found that San Diego’s low rental rates enable companies to have direct access to a highly talented and educated labor pool in San Diego while saving on real estate costs. The San Diego nonfarm employment base has grown 15.8% since 2010 to 1,436,400. The expanding economy provides a strong foundation for job growth from a diverse set of industries, including tech, life sciences and business services. As companies get priced out of more expensive markets, they can turn to San Diego and its growing economy and high quality of life.