X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

SAN DIEGO-It’s been a solid first quarter for the metro area’s industrial sector. In a recent report, Burnham Real Estate revealed that 915,000 sf of net absorption has already taken place. Those numbers put net absorption well ahead of least year’s total of 1.3 million sf.According to Chris Holder, vice president with Burnham Real Estate, both industrial as well as R&D space are showing increased activity. Holder says R&D space has experienced 207,000 sf of net absorption during the first quarter, its best quarterly numbers since 2000.”Both sectors are reporting stronger momentum, with industrial/warehouse space clearly at the forefront,” Holder says. “Industrial vacancy stands at 9.6% based on total leasable inventory, and R&D vacancy is also declining, currently hovering at 14.1%.” The Southern and Northern pockets of the county are the biggest beneficiaries, with demand strongest there, according to James Duncan, a senior associate with Burnham. “The limited supply and high cost of land in most of the popular mid-city and mid-county markets, makes industrial development far more feasible in areas like Otay Mesa, San Marcos and Oceanside.”As for new development, Otay Mesa leads the way with 648,100 sf under construction. Two of the bigger projects are One Piper Ranch and Opus Crossing, with the single largest facility being a 248,116-sf facility in Siempre Business Park. The project is 50% preleased by Reef.”The entire South County region is showing improved leasing activity,” Holder says. “Chula Vista recorded 229,661 sf of net absorption in the first quarter, activity that was accounted for by the purchase of the L Street Industrial Center by Sweetwater Union High School.”One other area seeing increasing activity is along the I-15 corridor. Poway alone scored 130,000 sf of net absorption during the quarter. “This activity was due to a high level of multi-tenant activity, which helped remove available space from the market in several projects,” Duncan says. “Vacancy in Poway stands at 9.6% on total competitive inventory, and at just 6.9 % based when owner-user facilities are included.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.