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New Deliveries Push Office Vacancy Up in San Diego
Highlights of PM Realty Group’s just-released fourth quarter 2015 San Diego Office Market report reveal the following findings:
• In 2015, construction deliveries slightly outstripped leasing demand, causing vacancy to increase 20 basis points.
• Eight buildings were under construction at the close of last year, including five speculative structures, largely concentrated in the I-5 Corridor. This is expected to contribute 580,141 square feet of competitive and owner-user space to the market through 2017.
• San Diego’s office leasing market finished the fourth quarter with 274,695 square feet of direct net absorption, increasing the 2015 total to 652,609 square feet of space.
• The I-5 Corridor captured 43 percent of the 2015 absorption gains, but Downtown’s Class A sector featured the largest gains, mainly due to Sempra Energy’s 320,000-square-foot HQ build-to-suit.
