San Diego Business Journal

San Diego Ranked 10th for Office Rent Growth

By Lou Hirsh Thursday, January 2, 2014

San Diego ranked 10th among U.S. metro markets for office rent growth in 2013, with lease rates rising 4.3 percent, according to a national report by brokerage services provider Cassidy Turley.

San Francisco led metro regions for rent growth, at 11.8 percent. It was followed by New York City (9.5 percent), Denver (7.8 percent), San Jose/Silicon Valley (7.3 percent), Austin (7 percent), Dallas (5.6 percent), Salt Lake City (5.5 percent), San Mateo County (4.9 percent) and Oakland-East Bay (4.4 percent).

“Rent growth is still being powered by energy-driven and tech-driven markets, but the rent recovery is clearly beginning to roll into more pockets of the country,” said Kevin Thorpe, chief economist at Washington, D.C.-based Cassidy Turley.

San Diego did not make the list of the Top 10 markets for 2013 net office space absorption, led by New York City (7.1 million square feet), Dallas (4.2 million square feet), Houston (3.9 million square feet, San Jose/Silicon Valley (2.4 million square feet) and Atlanta (2.3 million square feet).

The brokerage company said the U.S. has registered occupancy gains for 14 consecutive quarters. The national office vacancy rate stands at 15.1 percent, down from the recessionary peak of 17.3 percent.