San Diego With office space at a premium in San Diego and rental rates rising, many companies are eager to renew their leases.
Savills Studley, in a recent report on the San Diego office sector for the second quarter of 2018, noted that leasing volume jumped due to several significant leases with the health care, technology and defense contracting companies dominating.
Among leasing activity cited by Savills Studley were American Specialty Health’s renewal of its lease for 198,000 square feet of space at the Elements in Sorrento Mesa and Bofl Holding’s renewal of its lease of 136,000 square feet of space University Town Center.
Looking ahead, Savills Studley said the likelihood is for it to become increasingly difficult to find new office space.
That’s particularly true downtown, where Savills Studley said the availability rate was 14.4 percent compared with 16.8 percent for county overall.
“Across the entire region, there are only seven properties totaling just under 500,000 square feet underway,” the brokerage firm reported, and 60 percent of that has been leased before the buildings are even finished.
“Steady hiring, sustained leasing and limited construction have created the perfect climate for a slow draw down in space options,” according to Savills Studley