San Diego Business Journal

San Diego Ranks 15th Among High-Tech Office Markets

By Lou Hirsh Friday, August 17, 2012

San Diego places 15th in a ranking of the nation’s top 20 high-tech office markets, compiled by researchers at commercial brokerage firm CBRE.

CBRE’s “Tech-Twenty” ranking is based on growth of high-tech services and office rents over the past two years. Based on Bureau of Labor Statistics data, researchers reported that San Diego’s high-tech jobs grew 5 percent and high-tech office rents rose 4 percent during the period.

The top U.S. market was San Francisco, with 41 percent job growth and a 44 percent rise in rents. New York City, Silicon Valley, Raleigh-Durham, N.C., and Baltimore rounded out the top five.

San Diego ranked sixth in the nation for rent growth, 12th for net absorption growth, and eighth for its vacancy rate decline.

Among the top 20 high-tech submarkets, Sorrento Mesa placed 12th in the nation for rent growth, 14th for net absorption growth, and 17th for its vacancy rate decline.

Silicon Valley’s Mountain View submarket led the nation for rent growth, Seattle’s Lake Union topped the net absorption ranking, and San Francisco’s SOMA submarket did best for declining vacancies.

CBRE research director Colin Yasukochi said the performances of tech-centric submarkets are “major factors” in the overall U.S. office market recovery.

“With the high-tech economy growing nearly six times faster than the national average, we expect that these submarkets will continue to outperform, helping to counterbalance tepid job growth in other sectors and the uncertain economic environment,” Yasukochi said.