More Reasons for South County’s Rise

Parker: “I think lease rates are going to be impacted by rising costs in construction and that developers like Mike Murphy will need to get a little higher asking rate to account for rising costs.”

SAN DIEGO—The City is providing supporting infrastructure for users in the Otay Mesa submarket, and industrial tenants could save more than 46% on their rent by choosing it over Central San Diego, CBRE VP Erik Parker tells GlobeSt.com.

According to CBRE’s research, the San Diego industrial market continued to benefit from new construction deliveries this quarter. The majority of the deliveries came from Illumina’s newest lab facility totaling 295,837 square feet. Murphy Development also delivered a 121,970-square-foot warehouse in Otay Mesa fully vacant. According to CBRE Econometric Advisors, San Diego’s construction industry had the highest growth rate of all sectors, increasing 8.7% in the last 12 months; the group also predicts construction will remain among the largest growth sectors over the next 12 months.