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JLL: San Diego Healthcare Availability Tightens
Medical office space in San Diego saw positive net absorption in the 2nd quarter of 2022, according to a new report from JLL. The county was plus 45,000 square feet, led by the Oceanside/Vista and I-15 Corridor submarkets. Additionally, the MOB vacancy rate is down to 5.3%, the lowest in 15 years. Every submarket is below 6.5% vacancy, and countywide Class-A vacancy is just 4.3%.
Meanwhile, San Diego’s average asking rental rate increased another 4.8% year-over-year, standing at $3.86 Full Service Gross (FSG) in Q2. Class A MOB asking rent is up to $4.61 FSG and Class B is now above $4.00 for the first time, to $4.01 FSG.
Future availability indicates that demand pressures will continue in San Diego. JLL reports that there is now less than 100,000 square feet of medical office space under development, not nearly the pipeline needed to satisfy the demand.
- ◦Economy
