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New Deliveries Drive San Diego Q1 Office Vacancies
Vacancy rates continue to rise throughout the San Diego office market in the first quarter of 2024, increasing 70 basis points year-over-year to 12.1%, Kidder Mathews reported. Last quarter, total availability rates peaked at 19.5%.
Total availability fell slightly quarter-over-quarter to 19.1% but remains significantly higher than the region’s five-year average of 17%. Additionally, leasing volume for Q1 totaled 1.1 million square feet, down 48% Y-O-Y.
Kidder Mathews said new developments have been a primary factor in the increase in both vacancy and availability rates. Over 400,000 square feet of new office developments were delivered in 2023, with approximately 3.4 million square feet slated for delivery in 2024, with most of that space still available for lease.
Be there in person for the 8th Annual Connect Los Angeles 2024, May 1 at the Intercontinental Los Angeles Downtown. Industry leading experts will share insights and forecasts on today’s CRE markets.
- ◦Lease
- ◦Development
