San Diego County office tenants seeking to rent new space or renew lease agreements in the coming year will be looking at higher rates, according to a recent study.
Rents rose almost 8 percent in 1999 to the current average rate of $1.85 per square foot per month, said Kristopher P. Diulio, manager of research services for Marcus & Millichap, a commercial real estate brokerage. He’s the study’s author.
Demand by tenants is expected to drive rental rates up another 4 percent this year, he said.
The lowest asking rents can be found in South Bay, with an average of 75 cents per square foot per month. The highest rates are found in the University Towne Centre area, where rents can reach $3 a square foot.
The growth in high-tech, Internet and telecommunications companies is fueling much of the demand for space, he said. That’s leading developers to build more office space, which is being absorbed at such a fast rate the county vacancy rate this month is still under 8.5 percent.
Much of the absorption of space is coming from healthy local companies which are expanding into new space, he said.
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Dividend Announced: Burnham Pacific Properties Inc. will be paying a second-quarter dividend as it searches for a buyer.
The strip shopping center REIT’s stock peaked at nearly $16 a share in late 1997 and in the subsequent months slid to where it now sells for about $7 a share.
It recently postponed its annual shareholders meeting to October “to give interested parties sufficient time to review due-diligence materials and submit final transaction proposals in connection with the company’s exploration of its strategic alternatives,” according to a news release by Chief Financial Officer Daniel B. Platt.
The company will pay a second quarter dividend of 26.2 cents per share June 30 to shareholders of record June 20, he said.
Test Successful: San Diego-based vistaINFO has successfully tested its real estate transaction standard data exchange program,
