Leasing loses momentum after strong Q2 activity

San Diego office leasing totaled 1.0 million square feet (msf) in Q3 2026, down 20.7% from the prior quarter but a 3.0% increase year over year. Activity fell back below the five-year quarterly average, indicating that the rebound in Q2 did not translate into sustained momentum. Notable transactions included the County of San Diego's 60,000-square-foot (sf) renewal in Kearny Mesa and McCarthy Building Companies' 44,161-sf renewal in Del Mar Heights/Carmel Valley. Year-to-date leasing totaled approximately 3.0 msf, 6.6% above the same period in 2025.

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