Matt Carlson Carlson tells he expects asking rental rates to continue to rise even if the vacancy rate remains flat in this market, due “in large part to owners investing in their properties.”

SAN DIEGO—Asking office rates in San Diego County rose to an all-time high in the market, causing the largest quarterly jump since Q4 2015 as tenants are willing to pay a premium for well-appointed space in prime locations, says CBRE SVP Matt Carlson. According to a report from the firm, average asking rates increased from Q2 to Q3 to $2.92 full-service gross—the highest ever for San Diego County—an increase of 2.6% quarter-over-quarter and 4.6% higher year-over-year.

The rise in rates didn’t seem to affect office vacancy at all, with vacancy remaining flat for the quarter at 11% and net absorption at 97,729 square feet, marking five straight quarters of positive net absorption.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Carrie Rossenfeld

Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.

More from this author


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join now!

  • Free unlimited access to's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.