San Diego 2020 Q2 Market Report

Availability increases at mid-year 2020 as COVID-related lockdown slows leasing activity dramatically

Overall availability in San Diego increased to 17.0% in the second quarter – up 40 basis points over the quarter but still down 20 basis points from this point last year. Class A availability ticked down 10 basis points over the quarter to 17.3%. Overall asking rents decreased for the first time in several years to $3.15 per square foot (psf) per month, down 1.5% from last quarter but still up 6.8% year over year. Despite the modest increase in availability and slight decrease in average rents, the San Diego regional economy is now in recession and the full impact on the office market has not yet been fully realized. As a result, expect availability to increase over the next few quarters with continued downward pressure on asking rental rates.

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