MCA Realty hasentered the San Diego industrial market. Improving marketfundamentals, including a tightening vacancy rate and rising landvalues that constrain new development activity. For its foray intothe market, MCA has acquired a 40,990 square-foot multi-tenantindustrial asset in North San Diego's Escondido submarket. NorthSan Diego is one of the tightest regions in the market.

“San Diego is an attractive industrial market for severalreasons,” Tyler Mattox, a principal at MCA Realty,tells GlobeSt.com. “In addition to its proximity to our Irvineheadquarters, market vacancy is tight in the low 5% range anddemand has remained consistently strong for the last several years.Additionally, industrial land values in San Diego continue toescalate, as do construction costs. The construction of newprojects similar to Auto Park are simply not viable today so thereis an increased focus on the renovation of existing underperformingassets.”

While MCA is attracted to the fundamentals in the market, thisparticular asset was a perfect opportunity. “The project isprominently located at the junction of the 78 and I-15 freewayswith excellent visibility from Mission Road and Auto Park Way – twomajor thoroughfares in the area,” says Mattox. “The exceptionallocation combined with a good tenant mix and rents below today'smarket made it an especially attractive investment.”