San Diego’s office market ended 2024 with its strongest demand in three years and a declining vacancy rate.
After nine consecutive quarters in the red, net absorption surged to 304K SF in the fourth quarter, the strongest results in San Diego since Q3 2021 as office-related hiring increased and a dearth of new supply helped the market regain its balance.
The overall office vacancy rate, which hit its highest level since 2012 in Q3 2024 at 14.2%, ticked down to 13.9% in the fourth quarter. Three of San Diego’s six submarkets saw vacancies compress in Q4, with the Downtown submarket leading the way, decreasing by 60 bps to 24.6%, CBRE reported.
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