SAN DIEGO–Although vacancies and availabilities in San Diego's industrial market have increased along with other markets in Southern California that have normalized following the pandemic boom, the long-term outlook in San Diego points to stability.

The industrial vacancy rate increased for the eighth consecutive quarter in the first quarter of 2024 while net absorption was negative for the seventh consecutive quarter. The vacancy rate hit 4.6% and net absorption totaled minus 354,000 square feet, according to a new market report for San Diego County from CBRE.

However, leasing activity remained resilient, jumping to 2 million square feet in Q1 from slightly more than 1.5 million square feet in Q4 last year. In the first quarter, four deals were signed with more than 100,000 square feet of space, including three new lease deals and one renewal.