The Industrial Market Thrives Despite the COVID-19 Pandemic
The COVID-19 pandemic has negatively affected most segments of the commercial real estate sector with the exception of the industrial market. Demand equating to 2.62 million SF of net absorption over the past 12 months is the most recorded since the 12-month period ending in Q4 2015. Construction activity continues to be robust and vacancy – now below 5% for the first time in two-and-a-half years – is poised to reach an all time low by year end.
- Countywide average asking rental rate dipped by $0.02 to stand at $1.36/SF.
- Vacancy dropped 25 basis points (BPS) to reach 4.79%.
- At the current rate of demand, vacancy is likely to fall below 4.25% by year-end, the lowest rate ever.
- 5.74 million SF is currently under construction, 94% of which is in Otay Mesa.