Office Vacancy Rate Rises in Downtown San Diego

The vacancy rate for downtown office space in San Diego rose from 17% in August to 22.23% on Nov. 30, a rise of 5.23%, according to a survey by Coldwell Banker Commercial Real Estate Services.

The increase was due to the opening of the new First Interstate Bank Building at 401 B. St.; McClintock Plaza, rebuilt from the old Bekins Van & Storage warehouse at 1202 Kettner Blvd., and the Columbia Square Building at 444 W. C St., according to Kraig Kristofferson, Coldwell Banker associate vice president.

The survey of 31 structures with a total net rentable space of 5,942,553 square feet, showed 1,321,146 square feet of the total were unoccupied as of Nov. 30, Kristofferson said. At First Interstate, 320,000 of the building’s 467,840 square feet were unoccupied on that date, he continued; at McClintock Plaza, 18,000 of 36,000 square feet were vacant, and at Columbia Square, 20,000 square feet were vacant out of the building’s 25,000.

“We are continuing to be upbeat about the prospects for a gradually declining downtown office building vacancy rate,” Kristofferson said, “especially in view of the fact that the Horton Plaza shopping center will be completed within a year.”

The added that there were no major office building rental cancellations downtown during the three months covered by the survey, showing confidence in the area.