Office space market conditions are tightening in San Diego, and class A rents are holding steady, according to a third-quarter report from Savills Studley.
Those trends vary depending on the submarket, according to the firm's San Diego Office Sector Report:
Companies seeking life science and R&D space in Torrey Pines, UTC and Carmel
Valley must start their search early and be ready to jump quickly as steady demand has depleted availability. Smaller and mid-sized traditional office space users, who can cast a wider net geographically, do not have as much urgency but are encountering higher asking rents and reduced concessions as landlord optimism grows--even Downtown.
“Traditional space users remain tentative and focused on containing costs. Still, availability has pushed lower due to steady activity in the tech and life sciences sector,” said Mike Labelle, SVP with Savills Studley.
Class A asking rents were essentially unchanged in the third quarter, nudging up from $2.85 to $2.86. They have jumped by 5.8% year-on-year...Savills Studley: Stable Q3 Office Picture
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National Office Sector Report (Q3 2014)