Where SD Office Tenants are Seeking Space

Olson: “Kearny Mesa is one of the three submarkets with single-digit direct vacancy in the county and no new ground-up developments, so rents most likely will go up in 2018.”

SAN DIEGO—2018 is poised to be a strong office-leasing year for San Diego, based on current tenant demand, limited new construction and steadily increasing rental rates, JLL EVP Tim Olson tells GlobeSt.com. According to the firm’s Q4 2017 office report for the market, with limited supply, asking rents are in position to further increase, while construction for low-rise speculative and build-to-suits attracted the majority of preleasing leasing activity in 2017.

The report also revealed that converted and retrofitted buildings are helping to satisfy big-block demand in I-15 Corridor and North County West clusters. We spoke with Olson him about the report and the submarkets where space is in greatest demand.