Construction activity continued to boom with over 2.0 million sq. ft. of product underway. Approximately 275,000 sq. ft. of construction broke ground in Lakeside in Q2, including build-to-suits for Pepsi and PackRat and two spec warehouses.
Unemployment reached 15.0% in San Diego in Q2, with 195,800 payroll jobs lost year over year; however, some key tech and life science industries have maintained growth.
A handful of large moveouts pushed the vacancy rate 30 bps to 5.4% and net absorption to (501,868) sq. ft.
Both the low-finish and high-finish average asking rates increased $0.01 quarter over quarter to $1.00 NNN and $1.47 NNN, respectively.