Figures

San Diego Industrial Figures Q3 2024

October 14, 2024 5 Minute Read

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HIGHLIGHTS

 

§The industrial availability rate increased by 40 basis points from Q2 2024 to 8.1%, though the rate increase has slowed compared to previous quarters.
§Net absorption landed in the red for a ninth consecutive quarter up from Q2 to (845,327) sq. ft.
§Despite supply pressures in San Diego, a strong local economy and favorable demographics are keeping rent levels elevated. Although rent growth is poised to slow, most in-place rents remain below current market rate levels. Incomes should increase as leases roll.
§The total available sublease space has reached a historic high of 2.8 million sq. ft., which is slightly above the peak levels during the GFC.
§The surge of new construction deliveries has deified expectations. 205,845 sq. ft. of new industrial product delivered in San Diego this quarter, and there is additional 2.5 million sq. ft. in the pipeline set to deliver over the next 3 years.