The Trends: San Diego Capital Markets series tracks property sales activity and cap rates for the San Diego region. The report includes local cap rates and sales by buyer and product type. This issue includes data for the second half of 2017 (H2 2017), updated last on February 2018.


  • After a slow first half, the total sales volume surged to post the highest figure since H1 2007. Office sales hit the highest mark since H2 2007 and industrial sales hit the highest on record which goes back to 2003.
  • The high dollar volume was driven by both higher price tags and a higher volume of properties sold. Commercial properties hit a post-recession-high price per sq. ft., reaching $271 on average.
  • Looking ahead, buyer demand should remain strong given the positive fundamentals in the market. Across all commercial types, vacancy rates remain low, new product is limited and rents are expected to remain steady or rise.