Analysis
The San Diego industrial market saw a pullback in both sales and leasing volume in 2022, but a continued increase in rental rates and overall occupancy. Construction activity remains strong, though nearly entirely concentrated in South County, and the growth of the industrial tenant base continues.
A strong pipeline of development eases some supply pressure with several noteworthy projects breaking ground at the end of the year. As of Q4 2022, there are five warehouse properties, totaling nearly 677,260 SF currently under construction. These five buildings are split between three buildings at Heritage Industrial Park in Chula Vista and two buildings at Landmark at Otay in Otay Mesa. All of these projects are speculative with no pre-leasing as of the end of the year.
The average high-finish asking rate increased $0.20 from last quarter to $1.81 NNN, while low-finish asking rates continued to increase by only $0.01 this quarter to $1.33 NNN. The statistics come from CBRE, which includes Southwest Riverside County in its San Diego research.
Sources: CBRE, Cushman & Wakefield, Voit
SPECIAL REPORT: COMMERCIAL REAL ESTATE
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2023-01-30T08:00:00.0000000Z
2023-01-30T08:00:00.0000000Z
https://sdbusinessjournal.pressreader.com/article/282007561528297
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