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Industrial Vacancies in San Diego County Remain at Historic Low
Significant demand for low-finish industrial space has kept vacancy levels at a paltry 1.8% in San Diego, CA in the first quarter of 2022, according to a JLL report. Rents grew at a rapid 13.3% quarter-over-quarter, and are now 20% higher than a year ago.
As the overwhelming tenant demand outpaces existing supply, developers are working hard to alleviate the pressure. Some new projects include Majestic’s Sunroad Logistics Center, Cabot’s Otay II Commerce Center and Hamann’s Saint Andrews Otay Mesa Center.
It has been the Otay Mesa area that has seen the most intense absorption in Q1, with 769,000 square feet of industrial product newly occupied. Access to Mexico and the presence of a free-trade zone has attracted e-commerce, logistics and manufacturing to the region.
JLL anticipates that the ongoing supply issues, despite the new construction, will continue to put upward pressure on rental rates across San Diego in the near-term.
- ◦Development
- ◦Economy
