Drop in San Diego Office Space Vacancies
For the first time since 2007, the commercial office space vacancy rate for San Diego has dropped below the 14% mark.
In the fourth quarter of 2011, the San Diego office leasing vacancy rate dropped to 13.8 percent, the lowest it had been since it was at 14 percent in the third quarter of 2010.
The San Diego office rates still have a long way to fall, if it is to approach its recent low of 8.4 percent, which it hit in 2005, however it has already come a long way from its high of 15.3 percent in the first quarter of 2010.
The San Diego commercial real estate vacancy rate is still slightly higher than the national average, which currently sits at 13 percent, down from 13.2 percent in the third quarter and 13.5 percent from the year before.
The rental rate for San Diego office space however held almost constant from the third to fourth quarter, moving down one cent to $25.40, and for the year, was down from $26.05.
With San Diego office vacancy rates falling, one would expect office rental rates to start inching down but this is far from the case.
Over the last two years, vacancy rates have been on a wild "up and down" roller coaster ride, said John Galaxidas, President, Synergy Real Estate Group, Corporate Advisory, the largest group of independent tenant representatives in North America.
As we enter into the Presidential election year of 2012, vacancy rates will inch down creating a slight uptick in San Diego office rental rates, eventually leveling off or decreasing again slightly by end of fourth quarter of 2012.
So, if you are seeking to secure a great rental rate on San Diego office space, now is the time to either renegotiate your current lease or relocate to nicer, more cost effective office space.
At Synergy Real Estate Group, Corporate Advisory (www.synreg.com) our goal is to serve as the Tenant's Advocate and resource to companies seeking commercial space in the San Diego area by providing them with detailed market information and local expertise to better understand the local commercial real estate market.
This is a no-cost, no-obligation service to your company to help you determine if you can save money cutting your facility cost.
We understand the San Diego office rental market and since we only work with tenants we are able to show more properties than typical listing brokers and we avoid any conflicts of interest during the negotiation process. If you're unsure of the benefits of using a tenant representative, call us at: 888-979-7787 or visit our web site at www.synreg.com and we will be glad to go over the benefits our company provides relative to other firms.