Full-year leasing activity decreases amid a rise in unemployment

Full-year leasing activity in the San Diego office market reached 3.7 million square feet (msf) in 2025, a 14.7% decrease from the 4.3 msf reported in 2024. As tenants continue to thoughtfully recalibrate their space strategies, leasing activity softened for both full year and Q4. San Diego’s office leasing activity continues to be impacted by the downturn in the technology and healthcare sectors, as year-overyear office-using employment fell by 2.3%. Notably, Amazon is laying off software developer jobs in San Diego. The unemployment rate was 4.9% as of September 2025, an increase of 50 basis points (bps) from one year ago.

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