2018 Q1 Industrial San Diego North County Region Market Report

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Behind the Numbers 

> Combined industrial/R&D vacancy stood at 5.2% at the end of Q1 2018. This is a 23 basis point increase from the prior quarter (4.97% in Q4 2017). Direct vacancy made up 4.82% of the inventory while sublease vacancy stood at 0.38%. All North County submarkets maintain vacancy rates below 8%.

> North County combined industrial/R&D net absorption was a positive 89,002 SF in Q1.  Industrial buildings (manufacturing, warehouse, distribution and multi-tenant/incubator uses) posted positive net absorption of 144,085 SF, while R&D buildings (flex, wet lab and R&D uses) posted negative net absorption of 55,083 SF. Carlsbad ranked first in demand for North County and second in demand countywide behind Otay Mesa (+161,335 SF). 

> Average asking rental rates in North County have remained flat over the past year. The average asking rental rate stood at $0.90/SF NNN. 
124,581 SF of new construction was completed in Q1 2018. This was comprised of the first of four buildings in Industrial Property Trust‘s Pacific Coast Collection located in Oceanside at 1319 Rocky Point Dr. 

> There was 1,710,424 SF under construction in North County as of Q1 2018.  This includes Techbilt Companies’ 63,900 SF building in the Carlsbad Oaks East Business Park; Ryan Companies’ 411,000 SF Pacific Vista Commerce Center projects in buildings A, B and C on Whiptail Loop; Hamann Construction’s 128,402 SF building in Carlsbad Oaks North Business Park; RAF Pacifica’s 172,655 SF vec∙tor project in Carlsbad Oaks North, the 83,000 SF build-to-suit project for San Diego Hat Company on lot 7 of Carlsbad Oaks North, the 277,351 SF dis∙trib∙ute projects in lots 12 and 15 in the Carlsbad Raceway Business Park and the 222,028 SF pro∙duc∙tion projects in San Marcos ; HM Electronics 140,000 SF build-to-suit in Carlsbad, and Exeter Property Group’s 212,088 SF spec building in Escondido.

Colliers International North County San Diego Industrial Market Report

2018 Q1 Industrial San Diego North County Region Market Report

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