San Diego Industrial Market Tightens in 2nd Quarter
A Kidder Mathews market report indicates that San Diego County industrial leasing activity has slowed in the 2nd quarter as fundamentals tighten, however, demand continues to outpace supply. Because of market conditions and strong competition, rental rates have climbed to a record high of $1.36 per square foot on a triple-net basis.
Vacancy in San Diego has fallen to an all-time low in Q2, now standing at 2.7% and sales activity is reflecting demand, with prices hovering at $3.67 per square foot. The Otay Mesa submarket remains very active for sales, with e-commerce and logistics companies driving demand in the region.
Despite continued demand in the 2nd quarter, Kidder predicts that a cooling in the market is possible as rising interest rates and a possible recession cause the venture capital industry to pull back and also lead to a slowing of e-commerce growth.
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.