Vacancy rates for San Diego warehouse and industrial space remain high at 10.5 percent at the end of Q3. The rate had remained in the single digits for more than a decade but has since crossed into double digits and could remain there for the short term.
As a result of the higher vacancy rates, asking rents have fallen more than 10 percent year-over-year and there are some great deals out there for companies in a position to lease or renegotiate.
The market outlook for industrial space has been improving though as negative absorption continues to decrease which indicates the market may be stabilizing. We recommend contacting a tenant rep if you’re looking for new space or have an expiring lease and want to know more about your options.