Even the tech and life science sectors aren't saving San Diego's office market from the pandemic fallout. In the second quarter, the market's office availability rate grew again, up 30 basis points to 20.7%. Now, the rate is the highest on record since 2011, according to the latest research from Savills.
At 22.4%, the class-A vacancy rate outpaces the market average. In the second quarter 2019 through the second quarter 2020, the class-A availability mirrored the market rate. Both turned upward once the pandemic struck.
Rents are also down. In the second quarter, average rents were $3.12, down from the first quarter when rents were $3.15 and 2.5% from the start of the pandemic. Class-A rents are also down to $3.49 per square foot. Prior to the pandemic, class-A rents were $3.51.
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Kelsi Maree Borland
