Report: 2022 San Diego Industrial Market Tightens in 2nd Half
Like so many Southern California markets, San Diego is no different when it comes to industrial demand, and a new report from Kidder Mathews reflects that fact with average asking rental rates climbing to a record high of $1.40/SF in the third quarter. However, new developments and Amazon give backs, actually increased availability slightly to 5.1%.
Investors remain active throughout San Diego county, attracted to the diverse tenant pool and strong rent growth. Otay Mesa has been a favorite submarket, due to border proximity, while North County logistics buildings are also in high demand. In addition, the region’s prominence as a top tech and life science market has heightened logistics space demand for e-commerce and last-mile distribution.
Kidder concludes that the astronomical rent growth is not sustainable, with a near-future softening anticipated, as inflation slows e-commerce sales growth, coupled with rising interest rates and recession fears.
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.