Study: Region's Recovery Will Lag Nation

SAN DIEGO-The area’s office market will lag well behind the recovery of the national economy, according to a report by Insignia/ESG Research Services Group.

In 2001, the dot-com and technology storm swept through San Diego, leaving scores of buildings empty in its wake, while tenants scramble to recover losses through subleases and buyouts, according to the report. In the last 12 months, sublease availability has more than doubled, a net increase of 1.03 million sf. The battered North Cities market holds over half of this space, in addition to 2.20 million sf of direct available space.

The diminutive Carlsbad submarket posted 25.62% availability in the first quarter, offering almost 1 million sf of available space.