Leasing activity slows in San Diego as office-using employment levels decline

The San Diego office market experienced a decline in leasing activity for the second consecutive quarter, accompanied by a 2.2% drop in office-using employment during the first quarter. Leasing activity fell by 14.2% from the previous quarter to 981,700 square feet (sf), reflecting a 9.7% year-over-year decrease. While San Diego’s unemployment rate improved slightly from the previous quarter, office leasing activity continues to be impacted by the downturn in the tech and life sciences sectors. Notably, Pfizer sold its 630,000-sf Science Center Drive facility while also announcing layoffs. The unemployment rate stood at 4.4% in February 2025, a marginal increase from 4.3% one year ago.

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