San Diego Industrial Trends

Market Insights

In this issue of Market Insights, Eric Northbrook, SIOR, Senior Managing Director/Partner, sits down and talks with Josh West about himself and the San Diego industrial market. Watch the full video for great insight on the market and a really funny story.

Here’s a short recap of the video.

Who is Josh West?

Josh West, SIOR, is a Senior Vice President and Partner in the Voit San Diego office. He is in his twelfth year at Voit and specializes in the sale and leasing of industrial product along the I-15 corridor.

Macro Overview of Industrial Market

The market is telling the same story across the nation. For most major markets, there is a lack of product, low vacancy, and consistent demand. 2022 was strong, 2023 was strong and we are seeing the market tipping a little, but not in a negative way. 

Where is a User in Need of a 100,000 Square Foot facility Going?

Otay Mesa has the quality product in this size range. Kearny Mesa also but it has limited availability. Otay Mesa has new construction which increased vacancy from 3% to 9%.

How are Rental Rates?

They have stabilized after constant growth over the last few years. Last year we saw a 5% rental increase year-over-year. This year will probably be the same. We are not seeing the huge demand as compared to previous years and vacancy has doubled in the county. It’s a scary headline, but it creates a healthier market and more options. This will limit rent growth to a degree. Rates have peaked for now but will be stabilized for the foreseeable future.  As we’ve seen in health markets, long term they will continue to rise over time.

Share a Fun Fact

Watch the video to hear about Josh touring a building the day before the building was in the news.