San Diego County is the fifth most populous county in the United States and with such a large population, its no surprise that San Diego's office market fits along those same lines with more than 5,000 properties and 100 million square feet of space. Altogether there is more than 440 million square feet of commercial space when you count industrial, warehouse and retail properties.
There is currently 31.6 million square feet of Class A office space but up to 6 million of it is vacant as a result of vacancies approaching 20 percent. Class B is the second most common type of space in terms of the number of properties but is the most common in terms of total square footage with more than 52 million square feet. Class C has the highest number of properties but is the lowest in terms of the volume of space. Current asking rates vary from just under $20 for Class C properties to more than $30 for Class A space.
The future for San Diego's office market is still uncertain as the economy is showing signs of life but is still very stagnant in terms of growth. A recovery can only take place when companies begin to hire and look at expanding their operations but in the current business climate, many corporations are in a holding pattern when it comes to expansion plans.
It would appear that for the next 9-12 months, vacancy rates and rents will likely remain at or around their current levels barring a second downturn or explosive recovery period that would dramatically affect them.
