Hoeck: “[The San Diego office market] should be more sustainable and healthier than it's been in past cycles, even if it doesn't reflect that statistically.”SAN DIEGO—Controlled post-recession company growth has produced a less-volatile, but steadier San Diego office market that is more prepared to weather any future economic downturns and benefit from recently implemented tax cuts, CBRE SVP Mike Hoeck tells GlobeSt.com.
According to a Q4 2017 office report from the firm, the San Diego office asking rate fell slightly by $0.01 (-0.2%) quarter-over-quarter but increased $0.06 (+2.3%) year-over-year. Also, vacancy increased slightly by 30 bps in Q4 2017 to 11.3%, although the rate has remained below 12% for five consecutive quarters. In addition, net absorption was negative (-154,006 square feet) in Q4 2017 after five consecutive quarters of positive absorption, with year-to-date absorption at 482,241 square feet.
We spoke with Hoeck about these figures and what they mean for the San Diego office market now and looking ahead.
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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.
