DOWNTOWN (KGTV) \u2014 San Diego’s downtown office market continues to struggle with high vacancy rates, but experts say signs of a slow recovery are beginning to emerge.<\/p>\n
A report by commercial real estate group JLL shows San Diego’s overall office vacancy rate sits at 13.9%. Downtown has the highest vacancies in the region, at about 25%.<\/p>\n
Richard Gonor, managing director at JLL, said the shift to remote work and company downsizing pushed vacancies higher across the region.<\/p>\n
“Since the pandemic, there’s been a consolidation of companies and a rethinking of how people structurally work,” Gonor said.<\/p>\n
Downtown San Diego is the largest office market in the region, with 12 million square feet of space.<\/p>\n
“Downtown is the largest office market with 12 million square feet, and at about 25% vacancy, that means we’ve got about 3 million square feet of inventory that’s waiting for new companies to fill,” Gonor said.<\/p>\n
Despite the challenges, Gonor said interest in downtown is beginning to return, with more companies looking for space there to attract employees.<\/p>\n
“There’s some great opportunities downtown today, and we’re starting to see a resurgence in interest in downtown,” Gonor said.<\/p>\n
Landscape architect David McCullough said the changes on the ground are already noticeable.<\/p>\n
“If you’re in downtown about a year ago, it was a completely different downtown than what you’ll see today. You’ll see a lot more vibrance, a lot more activity,” McCullough said.<\/p>\n
McCullough said a cleaner, safer, and more active downtown will be key to revitalizing the area, but a full recovery could still take years.<\/p>\n
“I think 2027 is going to be remarkably different, and then it’s going to be a slow increase from there,” McCullough said.<\/p>\n
JLL’s latest report shows leasing activity remains below historical averages, but conditions are beginning to stabilize.<\/p>\n
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.<\/p>\n","protected":false},"excerpt":{"rendered":"DOWNTOWN (KGTV) \u2014 San Diego’s downtown office market continues to struggle with high vacancy rates, but experts say…\n","protected":false},"author":2,"featured_media":400403,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[28],"tags":[3010,160756,74,76,75,160757,7915],"class_list":["post-400402","post","type-post","status-publish","format-standard","has-post-thumbnail","category-san-diego","tag-commercial-real-estate","tag-jll-san-diego","tag-san-diego","tag-san-diego-headlines","tag-san-diego-news","tag-san-diego-office-vacancy","tag-san-diego-real-estate"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/400402","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/comments?post=400402"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/400402\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media\/400403"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media?parent=400402"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/categories?post=400402"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/tags?post=400402"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}