San Diego Business Journal

Office statistics and market conditions

Overall availability rates and vacancy increased slightly, largely due to significant increases in sublease availability and vacancy.

Outside of IQHQ and Stockdale’s massive projects in Downtown San Diego, the largest project under construction in San Diego at the end of 4Q was Breakthrough Properties’ Torrey View project. This three-building, 520,000 SF development has its largest building preleased by medical device company BD. Nearly all of the largest projects under construction in the county are being positioned to attract tenants beyond the traditional stalwarts of legal, insurance and financial sectors. Specifically, life sciences tenants are in the crosshairs of every major developer.

Tenants are reassessing their real estate footprint based on work-from-home policies as well as assessing both short and long-term needs working through and after the pandemic. Leasing within the 10,000 to 50,000 SF range will continue to be the main driver of activity, accounting for 39% of total SF in lease obligations set to expire 12 to 24 months from the end of the quarter.

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2023-01-30T08:00:00.0000000Z

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https://sdbusinessjournal.pressreader.com/article/281947431986153

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