SAN DIEGO—Like much of California, San Diego's fourth-quarter office sales activity cooled down in Q4 2017 after a strong Q3, and Yardi-Matrix's director of business intelligence Doug Ressler tells GlobeSt.com that sales will continue to erode from the highs of 2016.

According to a recent report from the firm, Los Angeles was the only California market to see an increase in its average price per square foot, reaching $469 in Q4. San Francisco came in second with $464, followed by the Bay Area with $293 at No. 3, with San Diego ($252) and Sacramento ($184) closing the list. And, in terms of sales volume and number of deals closed in the last quarter, San Diego came in at No. 3, with $407 million across 10 transactions.

We spoke with Ressler about the factors driving San Diego's office growth and what he expects to see down the road.