San Diego County’s asking rents and development are up for the bulk of all property types
- Throughout San Diego, all commercial real estate property segments have seen an increase in average asking rents year over year. The drastic increase of Laboratory (Biotech) asking rental rates can be explained by the minimal new development for the asset type. High demand from the Biotech industry and dearth of speculative construction have been the cause for the laboratory double-digit increases in average asking rents.
- New development and sales volume for Industrial began 2018 with a solid start. Warehouse and distribution development are at their highest levels in 20 years at over 2.5 million square feet online and sales volume is continuing to be active with $240 million in sales volume for Q1.
- Although Multifamily and Medical Office vacancies remained flat in Q1 from the year before, both categories continue to have record low vacancy at 3.9% and 6.4%, respectively. Medical and Multifamily leasing activity increased significantly from the first quarter of last year. Q1 had 811 apartment units absorbed and Medical Office has had 34 deals signed, totaling 113,829 square feet, indicating vacancy may decrease in 2018 for both property types.
- Office YOY total volumes are down across the board for Q1. Transaction volume (sales greater than $15M) were down 47.6%, 36.7% decline in total sales, 17.3% drop in average deal size, and 51% drop in transactions.
Senior Research Analyst
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