Driverless Cars Could Also Impact Industrial Sites

Sparks: “Same-day delivery expectations will continue to force the need for satellite locations.”

SAN DIEGO—Self-driving vehicles may make cheaper industrial markets neighboring primary markets more attractive to users and developers, CBRE’s industrial and logistics expert Ryan Sparks tells GlobeSt.com. The firm recently reported that the San Diego industrial market is having a strong first half, with many market fundamentals pointing toward continued improvement throughout the year.

Net absorption was positive for the 15^th consecutive quarter. During Q1, four buildings in Oceanside totaling 549,276 square feet were delivered fully leased. FedEx completed a 312,000-square-foot warehouse, and First Park @ Ocean Ranch delivered three buildings totaling 237,276 square feet that were delivered fully leased by Suja (171,676 square feet) and Brixton (65,600 square feet). The only industrial building to break ground this quarter was Continental Commerce Center, a 44,084-square-foot warehouse in Otay Mesa. These deliveries bolstered net absorption to 466,270 square feet.