San Diego Office Figures Q1 2026

San Diego’s office market began 2026 with its first quarter of positive demand since Q4 2024. The metro realized 16,231 sq. ft. of net absorption, a 106,000-sq.-ft. improvement from Q4 2025 and 131,000 sq. ft. better than Q1 2025, following a cumulative net loss of 609,000 sq. ft. in 2025. Downtown, potentially signaling early stabilization, posted its second consecutive quarter of positive net absorption.

Metro vacancy fell 20 basis points (bps) quarter-over-quarter (Q-o-Q) to 14.3%, supported by positive demand, a modest reduction in inventory, and a lack of supply-driven pressure. Vacancies, however, were up 40 bps year-over-year (Y-o-Y). Availabilities moved higher for a third-consecutive quarter to 19.5%, a 10-bp increase from year-end and a 40-bp increase Y-o-Y, but remained below the decade high.

Pricing, despite the uneven demand in recent years, has been resilient, and rents again expanded to start 2026. In Q1, the average asking rent increased 1.7% Q-o-Q and 4.8% Y-o-Y, to $3.49 per sq. ft.