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California  + San Diego  + Industrial  | 
Kidder Mathews Report: San Diego Industrial Leasing Cools in 4th Quarter

Report: San Diego Industrial Leasing Cools in 4th Quarter

Despite record rental rates and sale prices, a new report from Kidder Mathews indicates the hot San Diego industrial market is starting to cool down. The region recorded one of the lowest transactions volumes in the last 10 years in the 4th quarter at 2 million square feet, and sublease availability reached a new 10-year high.

San Diego rental rates increased to a record $1.44 per square foot NNN and sale prices remain near record highs at $378 per square foot, however, availability rates increased year-over-year in Q4 to 5.7%. The availability uptick can be partly attributed to Amazon giving back multiple spaces it leased last year. 

Kidder’s near term outlook calls for continued activity with leasing and sales, but deal flow is expected to moderate in 2023 due to economic headwinds. In addition, the growth of office and industrial building conversions to life science campuses is predicted to slow as the venture capital industry pulls back.


Inside The Story

Kidder Mathews

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.

  • ◦Economy
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