In the first quarter, San Diego County Class B office asking rates decreased by 1.3 percent quarter-over-quarter. However, amongst the market’s largest submarkets, there was little concurrence.
The two submarkets with the largest stock of Class B office, Downtown and Kearny Mesa, recorded the largest decreases in asking rental rates at 3.6 and 5.6 percent, respectively. Conversely, Del Mar Heights, which recorded the greatest increase of Class B rental rates, at 9.7 percent, has the smallest stock of Class B office. So, despite an equal number of these submarkets posting gains and losses, the weighted average brought the countywide Class B rental rates down in the first quarter.