San Diego Industrial Figures Q4 2025

Highlights 

• Overall leasing activity declined quarter-over-quarter (Q-o-Q) to 1,778,423 sq. ft. However, year-to-date (YTD) leasing activity of 11.8 million sq. ft. was the largest experienced in four years.

• The market experienced the fourth consecutive quarter of positive net absorption. YTD net absorption of 1.4 million sq. ft. was also impressive.

• Although average asking rents decreased $0.05 (-3.4%) Q-o-Q, it remained only -6.5% lower than the all-time high of $1.54 recorded in Q2 2024. It was $0.72 (100%) greater than the previous cycle low of $0.72 seen in Q1 2012.

• While the overall industrial availability rate saw no change Q-o-Q (9.2%), it remains the largest rate recorded in over 10 years.

• In Q4 2025, 61,999 sq. ft. of space was delivered. It was the lowest amount delivered in over three years.