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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.


Inside The Story

About Mark Nieto

Mark comes to ConnectCRE with an extensive background as a business and news reporter in San Francisco radio, as well as 35 years as a traffic reporter on several stations including KGO, KNBR, KCBS and KFRC. As a business reporter, Mark covered the tech world in Silicon Valley where he became familiar with real estate transactions in the hot Bay Area marketplace. He attended San Jose State University with a BA in Radio and TV Broadcasting and currently resides in the Lake Tahoe area where he gets to frequently enjoy all of his favorite activities: Golfing, Fishing, Hiking and Skiing.

  • ◦Development
  • ◦Economy