San Diego office market activity stays flat in the third quarter

In the third quarter 2023, the San Diego office market reported leasing activity that was mostly flat from last quarter. Leasing activity increased by just 1.7% to 1.1 million square feet (msf) from last quarter while also decreasing by 3.5% from one year ago. Current market conditions remain unstable due to recession fears, high interest rates, inflation and a slowdown in hiring. These economic factors have slowed demand. This has resulted in many office tenants downsizing their square footages or subleasing their existing spaces especially in the tech and life sciences industries. Biopharma, Aristea Therapeutics, Illumina, and Thermo Fisher are among a few technology companies that have all announced recent layoffs in San Diego.

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