Demand for office space is getting ever more intense, according to a report from the commercial brokerage firm Colliers International.
In the first quarter of 2019, average monthly rental rates for office space reached an all-time high of $2.75 and office vacancy rates dropped to the lowest level in 14 years at 10.2 percent.
By year’s end, Colliers predicted that monthly office rental rates could rise by 3% to 4% percent and vacancy could drop still further to 9%.
Cushman & Wakefield brokerage in its report for the first quarter of 2019 singled out Sorrento Mesa as a submarket likely to see considerable activity with TriLink BioTechnologies moving into 100,000 square feet of office space, Sorrento Therapeutics taking 61,000 square feet and Curology occupying 54,000 square feet.
“Developers have been eager to purchase and redevelop obsolete office or industrial projects in the Central County submarkets to accommodate life science and biotech companies as the existing available supply has significantly been reduced, while tenant demand from this industry sector remains at all-time highs,” Cushman & Wakefield reported.