San Diego County had 32,000 square feet of positive net industrial space absorption during the first quarter, with the region posting one of its lowest vacancy rates seen in 16 quarters, according to a report from the brokerage firm Voit Real Estate Services.
The overall county vacancy rate was 7.12 percent at the end of the quarter, down from approximately 7.9 percent a year ago.
“The low levels of construction over the past three years have kept supply fairly tight overall, and that has helped stabilize the commercial real estate market in San Diego,” said Josh Brant, market research analyst in Voit’s San Diego office, adding general trends will likely continue for the rest of 2013.
The local industrial market has now posted three straight years of positive net absorption following big losses in occupancy during 2008 and 2009, the report said.
Brant noted the region’s industrial vacancy has been highest in the northern and southernmost submarkets, Oceanside and Otay Mesa. However, Otay Mesa has recently shown signs of life, with vacancy coming in at 15.5 percent in the latest quarter, down from the peak of 23.8 percent in the fourth quarter of 2009.
— SDBJ Staff Report