Nine properties across five development projects delivered in Q3 2019, totaling 222,085 sq. ft., of which 78,584 sq. ft. is vacant.
As development opportunities become more scarce in Central San Diego, developers are focusing on Otay Mesa, East County and sections of North County where land is more available and costs are lower.
The introduction of relatively little vacant spec inventory to the market, coupled with strong leasing activity in light industrial/manufacturing and warehouse, helped push vacancy rates down for the first time in over a year.
Strong leasing activity in warehouse and light industrial yielded an overall net absorption of 546,054 sq. ft., the first positive quarter of net absorption in four quarters.