San Diego Industrial Figures Q4 2023

January 10, 2024 5 Minute Read

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  • While both vacancies and availabilities remained tight compared to the pre-pandemic norm, the total vacancy rate grew in Q4, at 4.2%, and total availability rose by 40 bps, to 6.6%.
  • Net absorption landed in the red for a sixth consecutive quarter down from Q3 to (525,516) sq. ft.
  • Leasing activity totaled just over 1.5 million sq. ft., lower compared to the activity seen in previous quarters of 2022.
  • The average low-finish asking rate dropped for the first time since 2020, decreasing by $0.04 to $1.38 NNN, and high-finish rents remained subject to quarter-over-quarter (Q-o-Q) volatility, dropping by $0.02 to $1.75 NNN.
  • The county gained several new industrial projects in 2023, with over 2 million sq. ft. now under construction, still slightly below the peak levels of 2020-21. The fourth quarter also saw the delivery of 480,908 sq. ft. of new construction.