SNAPSHOT – Q3 2025

San Diego’s office vacancy rate held steady quarter over quarter at 14.3%, according to data from Cushman & Wakefield.Tenant activity remains strongest for leases below 10,000 square feet as tenants are focused on higher-quality spaces with downsized footprints. Nevertheless, larger tenants were active with the largest lease of the quarter, signed by law firm Jones Day. Technology accounted for the highest percentage of new leasing activity at 23%, followed by government (22%) and legal services.

San Diego’s industrial vacancy fell on a quarterly basis to 7.5%. Occupancy increased primarily due to a 1.1-million-square-foot build-to-suit completion for Amazon, which ended 10 consecutive quarters of occupancy losses. County-wide, tenants are expected to lease 4.3 million square feet over the next two years. Rents for research and development spaces increased by 1.5% while manufacturing rents fell by 7.6% year over year. Manufacturing is a key driver, but technology, life sciences and defense are also major sectors.

Data provided by Cushman and Wakefield, a global commercial real estate services firm. The company tracks commercial real estate market activity including supply, demand and pricing trends.