San Diego Industrial Market Reports | Avison Young US - San Diego
San Diego industrial market report
We are seeing more space becoming available as many companies are trying to lower their space requirements based on increasing occupancy costs. During 1Q23 the San Diego industrial market saw 942,334 square feet of negative absorption. This has put upward pressure on vacancy which currently stands at 4.9% and downward pressure on pricing for lease and sale.
In the first quarter of 2023, San Diego has 3.25 million square feet of industrial product under construction.
During 1Q23, the San Diego industrial market saw 942,334 square feet of negative absorption.
Direct asking rent
Rates averaged at $1.84 psf in Q1 2023. While this is a slight dip in the trend from last quarter, rates have generally risen since the beginning of the pandemic.
Currently, there is 8.5 million square feet of industrial space available in San Diego, representing 8.6% of the industrial market. Of that, 2.0 million sf is available for sublease.
Total vacancy this quarter registered at 4.9%, with 3.6% being direct and 1.3% being sublet.
Investment sales volume decreased by 46.1% when compared to Q4 2022. While total sales volume in Q4 2022 was $507.0 million, Q1 2023 came in at $273.4 million. We also witnessed the price per square foot decrease by 47.8%.
Your source for the latest San Diego industrial market reports
Get in-depth industrial market reports and insights from commercial real estate experts in the Greater San Diego area. Avison Young advisors look at San Diego commercial real estate activities and the latest San Diego statistics to provide you expert market research on San Diego's industrial properties.
Explore different topics like the latest industrial market pricing trends and analysis of San Diego's current industrial real estate market conditions. Gain a better understanding of San Diego’s industrial real estate outlook and stay ahead of current industrial space trends. Make smart decisions when it comes to investing in industrial properties in San Diego's competitive industrial real estate market. Avison Young is your trusted source for commercial real estate industrial market insights in San Diego.
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