Market conditions and trends
San Diego medical office occupancy increased in the first quarter of the year, posting an increase of 28,144 square feet of positive net absorption. The current overall San Diego County direct vacancy rate of 6.6 percent is 51 percent lower than in 2009, when it peaked at 13.6 percent.
Most all of the San Diego medical office submarkets recorded minor movement in their total occupancy in the first quarter, with only two submarkets recording positive or negative movement greater than 10,000 square feet: the Oceanside/ Vista submarket increased its occupancy by 32,728 square feet, dropping into single-digit vacancy (9.8%) for the first time since 2008. La Jolla/UTC/Sorrento posted 20,146 square feet of positive net absorption.
The weighted average asking rental rate for medical office space continues to climb, with a current year-over-year increase of 4.9 percent for the county overall. The submarket posting the largest year-over-year increase was La Jolla/UTC/Sorrento which increased 14.6 percent and had the highest average asking rental rate in the county at $3.93 per square foot, per month, fully serviced.
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