While office asking rents in all San Diego submarkets have rebounded substantially from the fallout of the Great Recession, one submarket in particular has seen substantial growth in recent years: Rancho Bernardo. JLL reports that, according to research from the firm and SANDAG, the Rancho Bernardo submarket had a 14.2 percent year-over-year increase in office asking rents.
One of the reasons for the increase is that Rancho Bernardo has seen robust growth both in the healthcare and aerospace industries over the last few years. On the whole, San Diego has seen overall-market average asking rents increase 28.9 percent since 2010.
Asking rent growth in San Diego’s major submarkets over the last year has leveled off for the most part, with the exception of Mission Valley and La Jolla, which have both have seen nearly 20 percent rent growth in the last five years. Mission Valley’s centralized trolley-accessible location and La Jolla’s prestige status are the major factors eliciting high demand from tenants, according to JLL.
Oceanside has been another strong office submarket; the market now boasts a total of 1.1 million square feet of office inventory, says JLL. It is also one of the few San Diego submarkets that still has developable land to offer.