2021 Q4 Industrial San Diego Region
Key Takeaways
- Countywide average asking monthly rental rates increased by $0.09 in Q4 to $1.44/SF triple-net (NNN).
- Overall vacancy fell 85 basis points (BPS) to reach 2.83%, continuing to reestablish a historical low.
- Industrial vacancy hovers just above 2% while flex vacancy dipped below 5%.
- Nearly 500,000 SF of new construction completed in Q4 added to a record-breaking 4.9 million SF of industrial completions in 2021. Over 92% of the industrial and flex that was built in 2021 has been occupied.
San Diego’s industrial market continues record-breaking demand
Demand in the industrial and flex property segments continues to be the healthiest of all commercial real estate sectors. Industrial and flex vacancies have reached all-time low rates of 2.07% and 4.82%, respectively. Industrial demand remains concentrated in warehouse/distribution space while flex demand continues to be driven by a life science sector which has accelerated to record levels. Robust demand that has far out-paced new supply will continue to keep vacancies at tightening levels over the next year.
