San Diego Office Market Q1 2025
The San Diego office market vacancy rate increased by 160 basis points (bps) year-over-year (YOY) and rose 90 bps quarter-over-quarter (QOQ) to 13.8%.
Total availability held steady at 17.7% QOQ but is up 10 bps YOY.
Leasing activity totaled 1.1M SF in 1Q25, marking a 28.0% decline from the 1.5M SF recorded in 1Q24. Direct net absorption was negative 45.9K SF; however, strong sublease activity pushed total net absorption into positive territory at 36.9K SF in 1Q25, an improvement over 1Q24 and a bright spot amid softer leasing volume.