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Leasing activity slows in San Diego as office-using employment levels stay unchanged
Although leasing activity saw an increased in the previous quarter, the San Diego office market reported a decline in the fourth quarter. Leasing activity fell by 8.4% from the prior quarter to 1.1 million square feet (msf). However, this marks a 0.6% increase from the 1.0 msf recorded a year ago. Leasing activity in the San Diego office market has been affected by the downtown in the tech and life sciences sectors over the past two years, with the unemployment rate rising to 4.6% in November 2024, up from 4.3% one year ago. Bavarian Nordic, Takeda and Belharra Therapeutics just announced they are closing their San Diego locations.