San Diego County's industrial market reportedly posted its worst year on record in 2009, and demand is expected to be weak at least through the first half of 2010.
Colliers International reported that nearly 3.4 million square feet of negative absorption made 2009 the worst year ever for the San Diego County industrial market, and overbuilding hasn't helped.
Some 43 million square feet of industrial construction has been finished countywide, compared to 23.7 million square feet of net absorption since 1998.
Chris Reutz, Colliers research director, said while slightly more than 400,000 square feet of industrial square feet was returned to the market in the fourth quarter of 2009, there were worse quarters earlier in the year and in late 2008.
"It wasn't nearly as negative this time as the past few quarters," Reutz said.
Linda Greenberg, a Colliers senior vice president, said it is difficult to tell how long it might be before Otay Mesa's industrial market may rebound.
Greenberg said once the new infrastructure is completed, Otay Mesa will be poised to take off. "Otay Mesa will be the more economic choice."
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