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<\/a>Robust construction kept San Diego office space<\/a> metro among the nation’s most active, driven by large life science projects that continue to fuel demand for lab space<\/a>. Investments also held steady, building on 2025’s momentum.<\/p>\n\n\n\n At the same time, vacancy continued to rise<\/a> above national levels, highlighting ongoing absorption challenges amid elevated asking rents. Meanwhile, coworking outperformed U.S. levels, underscoring growing demand as workplace strategies continue to evolve.<\/p>\n\n\n\n San Diego\u2019s development pipeline included nearly 1.8 million square feet across eight projects at the end of February\u2014representing 1.5 percent of existing stock. However, office completions<\/a> amounted to just 169,750 square feet in the first two months of the year.<\/p>\n\n\n\n Among similar markets, America’s Finest City ranked fourth for office construction. Dallas had the largest development pipeline at 2.7 million square feet, while the Bay Area (2.6 million square feet) and Houston (2.5 million square feet) rounded out the top three.<\/p>\n\n\n\n Meanwhile, the competitive office segment of San Diego\u2019s pipeline comprised 1.2 million square feet. This accounted for 1.2 percent of existing stock\u2014three-fold the national average of 0.4 percent.<\/p>\n\n\n\nLarge-scale projects keep San Diego on top<\/h2>\n\n\n\n