San Diego Office MarketView Q4 2017
- San Diego’s unemployment rate fell to 3.3% in Q4 2017, the lowest since December 2000. The rate was 140 basis points (bps) lower than the previous quarter and 100 bps lower than the previous year.
- The San Diego office asking rate fell slightly by $0.01 (-0.2%) quarter-over-quarter but increased $0.06 (+2.3%) year-over-year.
- Vacancy increased slightly by 30 basis points (bps) in Q4 2017 to 11.3%. The rate has remained below 12% for five consecutive quarters.
- Net absorption was negative (154,006) sq. ft. in Q4 2017 after five consecutive quarters of positive absorption. Year-to-date absorption was 482,241 sq. ft.
- Two new office projects broke ground in Q4 2017; The Watermark in Scripps Ranch and Lift in Carlsbad.