Full Service Gross (FSG)
One number includes base rent, taxes, insurance, utilities, and janitorial. Standard for San Diego office. Watch for the base-year expense stop that passes future increases to you.
San Diego Office Space & Commercial Leasing Guide
Submarket rates, how the lease math works, and what to negotiate before you sign.
Last updated
Quick answer
San Diego office rates are quoted per square foot per month, not per year like most of the country — so "$3.75 FSG" means $3.75 per square foot each month, full service gross, with operating expenses included. Multiply by twelve to compare against national numbers. Broad current ranges run roughly $2.75–$4.00 per square foot monthly downtown, $3.25–$4.75 in UTC and Del Mar Heights, $2.25–$3.25 in Mission Valley and Kearny Mesa, and higher for creative space in Little Italy or life-science labs in Torrey Pines and Sorrento Mesa, which trade on their own triple-net market. Post-2020 vacancy left tenants with real leverage in traditional office: expect to negotiate free rent of roughly one month per year of term, a tenant improvement allowance, and a right to sublease. Landlords quote FSG for office and NNN for flex and industrial, where you add operating expenses of roughly $0.35–$0.75 per square foot monthly on top of base rent. Always hire a tenant representation broker — the landlord pays the commission out of the deal, so it costs you nothing and materially changes what you get.
Typical San Diego office asking rates (per sq ft per month)
| Submarket | Typical asking | Character |
|---|---|---|
| Downtown / Columbia | $2.75–$4.00 FSG | High-rise, transit, parking charged separately |
| Little Italy / East Village | $3.25–$4.50 FSG | Creative and brick-and-timber conversions |
| UTC / La Jolla | $3.50–$4.75 FSG | Priciest traditional office in the county |
| Del Mar Heights / Carmel Valley | $3.50–$4.75 FSG | Executive suites, ocean-adjacent |
| Sorrento Mesa / Sorrento Valley | $2.75–$4.25 NNN | Tech and life-science flex |
| Mission Valley | $2.50–$3.25 FSG | Central, freeway access, free parking |
| Kearny Mesa | $2.25–$3.00 FSG | Value office and flex |
| Carlsbad / North County coastal | $2.50–$3.50 FSG | Lower cost, long commute from the city |
| Chula Vista / South Bay | $2.00–$2.75 FSG | Cheapest county office space |
Lease structures decoded
Triple Net (NNN)
Base rent plus your share of taxes, insurance, and common area maintenance. Standard for retail, industrial, and lab. Add roughly $0.35–$0.75 per foot monthly to compare against FSG.
Modified gross
A negotiated middle ground — often the landlord covers taxes and insurance while you pay your own utilities and janitorial.
Load factor
You pay for rentable square feet, which includes a share of lobbies and hallways. A 15% load factor on 5,000 usable feet means paying for 5,750.
Annual escalations
Three percent a year is typical in San Diego. Compounded over a seven-year term that is a 23% increase — model the whole term, not year one.
Personal guaranty
Landlords ask small companies for one. Negotiate it down to a burn-off after 24 months of on-time payment or a capped 'good guy' guaranty.
What to negotiate beyond the rent
Free rent
One month abated per year of term is a reasonable ask in a soft office market. Ask for it at the front while you build out.
Tenant improvement allowance
Landlord dollars per square foot toward build-out. Ranges widely with term length; a longer lease buys a bigger allowance.
Parking
Downtown parking is unbundled and expensive per stall per month. In Mission Valley and Kearny Mesa it is typically free and included — this can swing the true cost more than the rent.
Sublease and assignment rights
The most valuable clause for a growing or shrinking company. Push for landlord consent that cannot be unreasonably withheld.
Expansion and termination options
A right of first offer on adjacent space, or a one-time termination right at month 36 with a penalty, buys real flexibility.
Holdover penalty
Often 150–200% of rent. If your build-out slips, this becomes very expensive very fast — negotiate it to 125%.
Alternatives before you sign a five-year lease
Coworking membership
Best under about eight people or when your runway is under a year. No build-out, no guaranty, month-to-month.
Private office in a coworking suite
Lockable room, shared amenities, per-desk pricing. The sweet spot for teams of three to fifteen.
Sublease from another tenant
Often 20–35% below direct asking, already furnished, with a short remaining term. San Diego has plenty of sublease inventory.
Flex and creative space
Kearny Mesa, Miramar, and parts of Sorrento Mesa offer office-warehouse combinations at far lower cost than tower space.
Executive suites
Traditional suite operators in UTC and Del Mar include reception and conference rooms — professional address without a real lease.
Stay remote, rent meetings
Many local teams keep a mailing address and book conference rooms hourly. It is dramatically cheaper than any lease.
About these numbers
- • Asking rates are broad San Diego County ranges assembled from published brokerage market reports and listing data. Actual deals differ from asking, and concessions frequently move effective rent well below the quoted number.
- • San Diego quotes office rent monthly per square foot. National sources usually quote annually — multiply by twelve before comparing.
- • Life science and lab space is a separate market with its own pricing, and rates there move independently of traditional office.
- • Use a tenant representation broker. The landlord pays the commission from the transaction, so representation is effectively free to you.
- • Nothing here is legal or brokerage advice. Have a real estate attorney review any lease longer than three years.
Frequently asked
How much does office space cost in San Diego?
Roughly $2.25–$4.75 per square foot per month depending on submarket, with Kearny Mesa and South Bay at the low end and UTC, Del Mar Heights, and premium downtown space at the top. San Diego quotes monthly, so multiply by twelve to compare with annual national figures.
What does FSG mean in a San Diego lease?
Full Service Gross — the quoted rent includes operating expenses like taxes, insurance, utilities, and janitorial. Triple net, or NNN, quotes base rent only and adds roughly $0.35–$0.75 per square foot monthly in expenses.
Do I need a broker to lease office space?
You should have one. Tenant representation brokers are paid by the landlord out of the deal, so their service costs the tenant nothing, and they know current concession levels the listing will never show you.
How much free rent can I negotiate?
In a soft office market, roughly one month abated per year of term is a reasonable target, usually taken at the start of the term while you build out. Longer terms buy both more free rent and a larger improvement allowance.
Which San Diego submarket is cheapest for office?
South Bay around Chula Vista and value office in Kearny Mesa are typically the least expensive, and both usually include free parking — which can matter more than the rent difference compared to downtown.
Is a personal guaranty normal?
Yes for small and young companies, but it is negotiable. Ask for a burn-off after 24 months of on-time payments, or cap the exposure at a fixed number of months of rent.
Keep reading
The Sandi Spots Newsletter
San Diego, in your inbox.
New beach finds, hidden taco shops, weekend events, and seasonal guides — once a week from a local. No spam, ever.
One email a week. Unsubscribe anytime.