Market Trends
- In 2024, San Diego experienced 1.8 million square feet (msf) of negative net absorption, contributing to a continued increase in vacancy rates. Vacancy rose by 290 basis points (bps) to 7.6% from Q4 2023, marking the highest level in the past five years.
- Asking rents have slightly decreased to $1.33, a 1.0% drop from $1.34 last quarter. Rent levels are notably divided, with Central County averaging $1.60, while North and South County average $1.23 and $1.24, respectively.
- The construction pipeline stands at 1.6 msf, nearly 0.4 msfbelow last year’s total. The majority ofthis pipeline is concentrated in the South County submarket, which accounts for 1.5 msf, or 92.0%, of total construction activity.