cushman & wakefield - sdbj 2016 economic trends

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San Diego Office MarketEconomic Trends

Tom van BettenManaging Director Tenant Representation

San Diego Business Journal | Cushman & Wakefield 2

Market CycleThe vacancy for the entire office market in San Diego is 13.3% at year end, trending down.


Market Update

+14%


Notable Transactions

Vertex Pharmaceuticals


Notable Transactions

ViaSat


The Irvine Company - UpdateThe Irvine Company continues to focus on new development and reinvesting in its

current portfolio; adding amenities, remodeling lobbies and suites.


The Irvine Company - Update

UTC • Rent growth of 4.5% over 2014, 58% increase since 2011• Currently over 92% leased• Only 1 full floor available in existing product Downtown • Rent growth of 12.7% over 2014, 23% increase since 2011 • Currently over 96% leased• Only 1 full floor available (leases out for signature)


Qualcomm - UpdateMultiple Qualcomm lease expirations lined up well with layoffs, as Qualcomm will let over 250,000 SF of leases expire in Q1 2016. They also recently put additional space

on the market for sublease, and sold a building of 300,000 SF.


Workplace Trends


Workplace Trends

Less Distractions


Flexible Office

Workplace Trends


TvB’s Tips

Survey

THE MAIN 3

Sublease

Take Your Time

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Tom van BettenManaging Director

Tenant Representation