Market Trends
- Year to date, San Diego has observed 1.6 million square feet (msf) of negative net absorption through Q3. These occupancy losses have led to a continued climb in vacancy, up 290 basis points (bps) from Q3 2023.
- Sublease availability continues to climb throughout the market, reaching nearly 2.1 msf as occupiers such as Avanza and Kaiser Permanente have recently brought space to market in South and Central Counties.
- South County boasts the highest submarket vacancy rate at 11.0%, following nearly 2.0 msf of construction deliveries over the last four quarters, and recently delivered projects such as the Otay Border Crossing remain available.