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Office Absorption Climbs, Vacancy Dips

SAN DIEGO-Investment sales of office buildings total more than $900 million in the first half of the year, according to the new report by Burnham Real Estate.

By Amanda Paxson | Updated on July 25, 2005

SAN DIEGO-Office absorption climbed and vacancy dipped during the second quarter, according to a new report by Burnham Real Estate. The company also reports that investment sales of office buildings remained brisk in the second quarter, helping to produce a total of more than $900 million in sales in the first half of the year.

The rising absorption and declining vacancies during the first half of 2005 translated into higher rents for the county, according to the Burnham report.”As the ‘quality’ available space continues to get leased and overall tenant demand remains steady, the San Diego office market is establishing a strong foundation,” says Mark Wayne, SVP and principal with Burnham.

The report shows that 940,000 sf of office space was absorbed in the first half of the year, with 510,000 sf of that absorption taking place in the second quarter. Should this pace continue, total absorption will place second to the rate in 2000, when demand for office space topped over 4.6 million sf. The central suburban and north city regions posted the most activity, with 550,112 sf and 356,245 sf absorbed, respectively.

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