San Diego Snapshot – July 23

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Sorrento Mesa has highest leasing volume and average size leases, while Mission Valley’s small to midsize leasing is robust

  • Since 2013, the Sorrento Mesa/Valley and UTC/Eastgate submarkets have seen a combined 12.2 million square feet of new and renewal leasing activity. Although Sorrento Mesa has given back a handful of large blocks of space this year, the submarket continues to be resilient with tenant activity. Over the last five years, Sorrento Mesa has averaged approximately one million square feet each year of leasing activity. Halfway through 2018, the submarket has already totaled about 950,000 square feet, demonstrating it should outpace its recent historical average by end of year.
  • A few of the largest leases year to date in Sorrento Mesa include American Specialty Health (199,744 square feet), Sony (120,000 square feet), and Plaza Home Mortgage (55,138 square feet) that contribute to its largest average lease size. Even though Sorrento Mesa’s leasing volume leads the way, the submarket has the highest direct vacancy in the county at 18.3 percent, 710 basis points above the total direct vacancy of the entire market.
  • Mission Valley is another notable high demand submarket having the most amount of lease deals. The direct vacancy is currently one the lowest at 7.4 percent. Mission Valley is one of the most central regional locations and is recognized for its back-office type tenants that need smaller to midsize workplaces.

Patrick Ashton
Senior Research Analyst
858 410 6346

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