Total availability rate ends 2020 at its highest level in nine years
At year's end, the total availability rate in San Diego’s office market increased to 20.2%, up 150 basis points (bps) over the previous quarter and up 330 bps from a year ago. Class A availability increased 250 bps over last quarter to 21.9%. Overall average asking rents were flat from the previous quarter at $3.13 per square foot (psf) per month but still up 2.8% year over year. Class A average asking rents have now decreased for three consecutive quarters to $3.46 psf but are still up 3.4% year over year. With availability levels now back to where they were a decade ago, expect continued downward pressure on rental rates through 2021.