| |
|
The San Diego County industrial market posted its fifth consecutive quarter of negative absorption. The decreased demand in Q4 was not nearly as extreme as the previous two quarters, but it is likely that weak demand will continue for at least the early half of 2010.
Q4 combined industrial / R&D net absorption totaled a negative 404,854 square feet. Countywide, Q4 net absorption for industrial space (manufacturing, warehouse, distribution, and multi-tenant/incubator buildings) totaled a negative 113,401 square feet and R&D space (flex, wet lab and corporate headquarters buildings) totaled a negative 291,453 square feet.
Overall demand throughout 2009 was decidedly negative for the county and the majority of its submarkets. Nearly 3.8 million square feet of negative absorption made 2009 the worst year on record for the San Diego County industrial market. Only 3 out of the 21 submarkets recorded positive absorption for the year with the majority of submarkets each losing over 100,000 square feet.
Q4 vacancy increased by 26 basis points to stand at 11.6%. The industrial and R&D vacancy components measured 10.4% and 14.5%, respectively. Compared to one year ago, R&D vacancy increased by 276 basis points (11.7% in Q4 2008) while industrial vacancy increased by 242 basis points (8.0% in Q4 2008).
Q4 combined industrial / R&D direct vacancy was 10.5%, a 35-basis-point increase over the previous quarter. Sublease vacancy dropped by 20 basis points to stand at 1.1%.
Construction activity in 2009 totaled 1.1 million square feet, none of which was completed in Q4. Proposed new development totals nearly 5.8 million square feet.
Contact Chris Reutz at 858.677.5385 for more information.
  San Diego Knowledge Report - Industrial - 2009Q4.pdf
Email Report Link To Your Friend
|
|