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Commercial Markets Showing Promise

SAN DIEGO-The office, industrial and R&D markets are all showing signs they may be recovering from the recent letdown in leasing, according to a study by Burnham Real Estate Services.

By Randyl J. Drummer | Updated on July 24, 2002

SAN DIEGO-The county’s office, industrial and R&D markets all reported steady increases in net absorption during the second quarter–signs that the recent slow down in leasing may be nearing an end, according to a study by Burnham Real Estate Services.

“We predicted that the office, industrial and R&D markets would see a pickup in leasing activity during the second half of 2002,” says Mike Philbin, Burnham Real Estate’s managing director of transaction services. “It appears that we are on track to equal the absorption levels that occurred at the start of the 1996 real estate recovery.”

Vacancy rates are beginning to decline, albeit slightly, showing that the drop in new construction is beginning to affect supply once again, particularly in the mid-county submarkets, according to Philbin. Lease rates should rise accordingly, he adds.

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