Figures

San Diego Office Figures Q3 2026

Market holds steady but demand remains limited

October 9, 2026 5 Minute Read

Looking for a PDF of this content?

Download

  • Vacancy edged down to 13.6% from 13.8% in Q2 and is 80 bps lower than a year ago, helped by a 0.4% (282,000 sq. ft.) reduction in inventory and no new supply. Sublease vacancy held at 0.9%, less than half of this decade’s peak.
  • Leasing activity totaled 1.2 msf, down 11.7% quarter-over-quarter. Central San Diego captured 52.3% of the total. North County rose for a third straight quarter to its highest level since Q2 2024, and Downtown reached its highest total of 2026.
  • Average asking rent was $3.51 per sq. ft. FSG, up 2.6% year-over-year, with rates higher than a year ago in four of the six submarkets. Rent dipped 1.1% from Q2, led by a 1.0% pullback in Class A.
  • Net absorption was negative 157,000 sq. ft., following negative 151,000 sq. ft. in Q2, though year-to-date absorption is 156,000 sq. ft. better than a year earlier. Availability rose to 19.2% from 18.9%, and only North County and Southwest Riverside posted positive absorption.