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San Diego leasing activity continues to decline
Leasing activity in the San Diego office market remained below the five-year average of 1.2 million square feet (msf), totaling 0.8 msf in Q1, representing a 7.1% decrease from the prior quarter and a 17.7% decline year over year. Quarterly leasing activity has been below 1.0 msf for five consecutive quarters. As tenants continue to thoughtfully recalibrate their space strategies and examine future space needs, leasing activity has softened. In addition, several industries in San Diego continue to face challenges, with technology firms continuing to downsize and life science companies navigating ongoing funding constraints. Notably, San Diego-based firms Gossamer Bio and Bicycle Therapeutics recently announced staff reductions.