Report: San Diego Office Leasing Slows

SAN DIEGO-Although the San Diego economy shows signs of strengthening and overall office market indicators point toward stabilization, leasing activity slowed dramatically during the first quarter of 2010, according to a recent Studley report. Overall leasing equaled 927,953 square feet, 27.8% less than the previous quarter but 8.9% more than a year ago.

On a trailing four-quarter basis, which is the sum of all leasing activity over the last four quarters, overall leasing totaled 4.7 million square feet, a slight increase as compared to the previous four quarters, according to the report, however it was a 16.2% decline as compared to one year ago.    

“Class A deal volume was particularly anemic, reaching only 421,295 square feet, a quarterly decline of 36.5%,” says Mike Labelle, senior vice president and co-branch manager of Studley’s San Diego office. “The market has yet to see the pervasive flight-to-quality that generally kicks off a recovery and, with space still in ample supply, most tenants see little need to rush leasing decisions.”