San Diego Office Rent Price & Sales Report

2023 Office Space Rent & Sales

  • $41.60 2023 Avg. Asking Rent
  • 18.90% 2023 Office Vacancy Rate
  • $434.1M2023 Total Office Sales
  • $310.95Avg. Sale Price/SF

San Diego office price per square foot in 2023 was $41.60 on average. The local office market recorded an average vacancy rate of 18.90% across all asset classes combined. The 13 transactions that closed here throughout 2023 amounted to a total sale volume of $434.1M. San Diego office space commanded an average sale price per square foot of $310.95.

See how this market compares to the national average: U.S. office space rent & sales.

Average Rent by Office Class

2023 Average Office Rent per Square Foot

  • San Diego Class A & A+ Office Space$46.25
  • San Diego Class B Office Space$36.44
  • San Diego Class C Office Space$24.72
  • California Class A & A+ Office Space$56.30
  • California Class B Office Space$37.45
  • California Class C Office Space$44.91

San Diego, CA Office Asking Rents by Class

Average office rent in San Diego rested at $41.60 per square foot in 2023. As would be expected, office rent price showed some variation from one asset class to another. As such, the asking rent for class A office space in San Diego averaged $46.25 per square foot. Across all submarkets, class B office space recorded an average asking rent of $36.44 per square foot. Meanwhile, assets encompassing class C office space saw asking rents of $24.72 per square foot, on average. Comparably, statewide California average office rents by class in 2023 were: $56.30 per square foot for class A office space; $37.45 per square foot for class B office space; $44.91 per square foot for class C office space.

2023 Office Vacancy Rates in San Diego

Submarket Asking Rents Vacancy Rates
Carmel Valley $56.05 14.87%
University City $48.44 14.08%
Mission Valley $43.10 19.36%
Downtown $42.67 29.75%
South San Diego $42.31 8.14%
Scripps Ranch $39.22 11.64%
Rancho Bernardo $38.71 15.31%
Sorrento Valley $36.96 21.27%
Kearny Mesa $36.30 15.77%
West San Diego $35.98 16.18%
East San Diego $34.98 9.70%
Torrey Pines $31.14 13.30%
Poway $28.32 9.72%
Mira Mesa - Rancho Penasquitos $25.87 7.58%
Data provided by Commercial Edge
Submarket differences in factors such as property mix, degree of accessibility, and availability of amenities influence not only variation in office rent price, but also in vacancy rates. The overall office vacancy rate on the San Diego market was 18.90% in 2023. Looking at the market stats on a more granular level, data shows that the lowest office vacancy rate in San Diego was 7.58% in the Mira Mesa - Rancho Penasquitos submarket, while the highest office vacancy in the market was 29.75%, recorded in Downtown.

Office Spaces for Rent in California

San Diego Office Sale Price per SF

  • $310.952023 Avg. Price per SF
  • -27.24%Y-o-Y Avg. PpSF Change
  • $434.1M2023 Office Sales Volume
  • 132023 Number of Transactions

San Diego, CA Sale Price per SF Trend

  • San Diego Avg. Sale Price per SF in 2023$310.95
  • California Avg. Sale Price per SF in 2023$256.51
San Diego office space cost in 2023 marked a -27.24% change compared to the previous year. The sale price for office space in San Diego averaged $310.95 per square foot in 2023, across all market subdivisions and asset classes. Conversely, the statewide California average office sale price during the same time period was $256.51 per square foot.

2023 Office Sales Volume

  • San Diego, CA Total Office Sales Volume in 2023 $434.1M
  • San Diego, CA Total Number of Office Sales Closed in 2023 13
A total of 13 deals closed on the San Diego office market in 2023, adding up to a yearly sales volume of $434.1M. Notably, the largest transaction on the market saw Cubic Corporation Headquarters change hands for $148,250,000 on 3/30/2023.

Largest San Diego Office Sales in 2023

Property name Address Date Price
Cubic Corporation Headquarters 9233 Balboa Avenue 3/30/2023 $148,250,000
Rose Canyon Business Park 4901 Morena Blvd 3/23/2023 $72,750,000
Tower 180 1010 2nd Avenue 12/21/2023 $61,000,000
Yard, The 5825 Oberlin Drive 5/19/2023 $36,000,000
Cubic Mission & Performance Solutions Headquarters 9323 Balboa Avenue 3/30/2023 $27,110,000
Data provided by Commercial Edge

Coworking Spaces in California

2023 Office Construction in San Diego, CA

  • San Diego, CA Total SF completed in 2023 744,964
  • San Diego, CA Total SF under construction in 2024 3,972,324

During 2023, 744,964 square feet of new office space were delivered across the market. At the close of 2023, the San Diego office inventory included 5 buildings equal to or larger than 25,000 square feet, which comprised 744,964 square feet of office space. Looking forward, development activity throughout 2024 is estimated to add 3,972,324 square feet of office space to the market, before year-end.

Largest Office Properties Recently Completed in San Diego
Office building Address SF Completed
Bioterra 5889 Oberlin Drive, 92121 315,997 2024
West 1011 Union Street, 92101 299,000 2024
The Campus at Horton - Bldg. 200 200 Horton Plz., 92101 204,842 2024
Aperture Del Mar - Building 4B 6040 Edgewood Bend Court, 92130 160,101 2024
Aperture Del Mar - Building 4A 6040 Edgewood Bend Court, 92130 127,309 2024
Via Del Campo 2 16705 Via Del Campo Court, 92127 83,482 2024
RaDD - 2A - Alley 825 N. Harbor Dr., 92101 69,068 2024
RaDD - 4A - Edge 975 Waterfront Pl., 92101 41,527 2024
The Campus at Horton - Bldg. 600 300 Horton Plz., 92101 37,932 2024
La Jolla Commons - Tower III 4727 Executive Drive, 92122 212,851 2023

Worth noting among recent office completions on the San Diego market is Bioterra, which is currently the largest new office development in the city, at 315,997 square feet.

Data provided by Commercial Edge

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This market stats report is based on analysis of city-level data that includes office properties equal to or larger than 25,000 square feet in size. Averages were calculated based on values dated January 1st 2023 through December 31st 2023. Construction pipeline data represented herein is valid as of April 2024. The information on this page was compiled using data provided by CommercialEdge, a market intelligence solution which offers comprehensive real market knowledge on all San Diego commercial properties sized 25,000 square feet or larger.

While every effort was made to ensure the accuracy of the data presented in this report, the information is provided “as is” and neither CommercialCafe nor CommercialEdge can guarantee that the information provided is complete.