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California  + Office  | 

San Diego Office Asking Rates Hit Record High

The latest CBRE research for the second quarter shows asking lease rates for the San Diego office market office continued to climb to a new historical record high of $2.73/PSF. Several large move-outs in Central San Diego resulted in negative net absorption for the quarter and a slight increase in vacancy.

Overall, fundamentals in the San Diego office market remain strong as year-to-date net absorption surpassed total net absorption for 2015 and overall vacancy remained near pre-recession levels.

CBRE’s Matt Carlson says, “In the absence of new development across the county, rehabilitated and repositioned assets are seeing the greatest activity and increased rental growth.”

SD CBRE Q2 16 Office Report

Additional highlights of Q2:

  • The asking rate increased 2.6% quarter-over-quarter and increased 9.2% year-over-year to $2.73
  • Average asking rates decreased year-over-year in six of the 28 office submarkets, showing this theme is affecting the majority of the market
  • Class A rates increased 9.7% year-over-year, the largest increase of all classes
  • Overall vacancy increased 20 basis points (bps) quarter-over-quarter to 12.6%
  • Negative net absorption drove vacancy up in Central San Diego 70 bps quarter-over-quarter to 12.4%

For comments, questions or concerns, please contact Dennis Kaiser

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About Dennis Kaiser

Dennis Kaiser is Vice President of Public Relations and Communications for Connect Creative. Dennis is a communications leader with more than 40 years of experience including as a journalist and in corporate and agency marketing communications roles. He is responsible for Connect Creative’s agency client services and is involved in a range of initiatives ranging from public relations and content strategy, communications and message development, copywriting, media relations, social media and content marketing services. Prior to joining Connect Media in 2015, his most recent corporate communications roles involved leading a regional public relations effort across Southern California for CBRE, playing a key marketing role on JLL’s national retail team, and directing the global public relations effort at ValleyCrest (BrightView), the nation’s largest commercial landscape services company. He has worked on marketing communications assignments for such CRE companies as Blackstone/Equity Office, Carlyle, Caruso, Disney Resorts, GE Capital, Irvine Company, Hines, Howard Hughes Corp., Jeffries, Lennar, MGM, Marcus & Millichap, Prologis, Raleigh Studios, Simon, Starwood, Trammell Crow Company, Transamerica, UBS and Wynn Resorts. Dennis has also worked on communications and launch strategies for a number of consumer electronic, media and tech brands including SlingMedia, Channel Master, Deluxe Media Entertainment, BeIn Sports, EchoStar and Sprint. Dennis’s agency background included firms such as Off Madison Ave., Idea Hall and Macy + Associates. He has earned an outstanding reputation with organization leaders as a trusted advisor, strategic program implementer, consensus builder and exceptional collaborator. Dennis has developed and managed national communications programs for Fortune 500 companies to start-ups, both public and private. He’s successfully worked with journalists across the globe representing clients involved in major-breaking news stories, product launches, media tours, and company news announcements. Dennis has been involved in a host of charitable and community organizations including the American Cancer Society, Easter Seals, Boy Scouts, Chrysalis Foundation, Freedom For Life, HOLA, L.A.’s BEST, Reach Out and Read, Super Bowl Host Committee, and the Thunderbirds Charities.

  • ◦Development
  • ◦Lease
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