Thank you for sharing!

Your article was successfully shared with the contacts you provided.

SAN DIEGO-With perhaps the highest effective rent growth forecast in the nation, the city’s office market has swiped the number two slot in Marcus & Millichap Real Estate Investment Brokerage Co.’s National Office Index for the second year in a row.

The index, which Marcus & Millichap’s researchers call a “snapshot analysis,” ranks 38 office markets nationwide based on a series of 12-month “forward-looking supply and demand indicators” including forecast employment and rent growth, vacancy, construction and absorption.

“San Diego’s economic diversity has allowed the office market to maintain its high-ranking performance,” says Kent Williams, vice president and regional manager of Marcus & Millichap’s local office. “Job growth and rising absorption have set the stage for marked improvement in San Diego’s office market for 2004, and office values will continue increasing over the short term.”

Marcus & Millichap’s findings show that 13,000 new office jobs are expected in the city in 2004, which, in turn, is projected to shrink vacancy by 160 basis points. In addition, construction is being significantly curtailed with only 550,000 sf of office space planned for delivery in 2004. All of these factors point to a dramatic increase in rental rates, with effective rents expected to jump to $22.25 per sf, which means a 2.3% increase and the highest rent growth forecast among the 38 markets surveyed.

Despite having such an impressive rent growth forecast, the city has been beaten out for the top spot in the index by Washington, DC, which has received a boon recently due to increased defense spending and an ever-expanding federal government.

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
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper


Join GlobeSt

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

  • Free unlimited access to GlobeSt.com'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 ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.