SAN DIEGO—While office rental rates have spiked 25% in the past two years in Downtown San Diego, there is still more room for growth before tenants feel the pain, Colliers International SVP Tim Cowden tells GlobeSt.com.
According to the firm's Q4 2016 office report for San Diego County, the 1.68 million square feet of net absorption for 2016 pushed demand to its strongest level since 2005, and countywide rental rates are at their highest point in eight years at $2.58 per square foot per month. However, 2016 was the slowest year for new development in the past four years, with 2017 expected to remain historically low.
The report also showed that Downtown San Diego recorded the highest net absorption for 2016 and will to continue to be a hot spot for co-working & tech start-ups. We spoke with Cowden about office development and why co-working and tech startups are attracted to Downtown.
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
