by Calculated Risk on 7/21/2008 12:13:00 PM

From the San Diego Union-Tribune: 16% office vacancy rates seen in county

San Diego County's office market continued to soften in the second quarter, with vacancy rates reaching 16.1 percent, thanks to tepid demand and new construction adding to supply.
...
Last year at this time, office vacancy in the county was 12.2 percent. ... The last time the county's overall office vacancy topped 16 percent was in 1995 ...

Meanwhile the net absorption is negative:

CB Richard Ellis reported that net absorption – which measures the amount of space leased versus the amount vacated – is negative 430,000 square feet so far this year.

And more space is coming on line:

Some 1.3 million square feet of for-lease buildings remain under construction

Negative demand. And more and more new supply. Not the best fundamentals for the office market.