MCA Enters San Diego Industrial Market

MCA Realty has entered the San Diego industrial market. Improving market fundamentals, including a tightening vacancy rate and rising land values that constrain new development activity. For its foray into the market, MCA has acquired a 40,990 square-foot multi-tenant industrial asset in North San Diego’s Escondido submarket. North San Diego is one of the tightest regions in the market.

“San Diego is an attractive industrial market for several reasons,” Tyler Mattox, a principal at MCA Realty, tells GlobeSt.com. “In addition to its proximity to our Irvine headquarters, market vacancy is tight in the low 5% range and demand has remained consistently strong for the last several years. Additionally, industrial land values in San Diego continue to escalate, as do construction costs. The construction of new projects similar to Auto Park are simply not viable today so there is an increased focus on the renovation of existing underperforming assets.”

While MCA is attracted to the fundamentals in the market, this particular asset was a perfect opportunity. “The project is prominently located at the junction of the 78 and I-15 freeways with excellent visibility from Mission Road and Auto Park Way – two major thoroughfares in the area,” says Mattox. “The exceptional location combined with a good tenant mix and rents below today’s market made it an especially attractive investment.”