Market Trends
- San Diego opened 2025 with positive net absorption, reversing the significant negative absorption recorded in 2024. Vacancy is plateauing at 7.9%, and market fundamentals are improving, though uncertainty surrounding tariffs may stifle short-term demand.
- Development activity is normalizing and totals 1.2 million square feet, bringing the construction pipeline, as a percentage of inventory, below 1.3%—nearly 100 basis points below the five-year average.
- Notable 3PL leases were signed this quarter including JD Logistics and Pilot Freight Services securing over 100,000 square feet (sf) and 55,000 sf, respectively. Also, Anheuser-Busch renewed its 130,000-sf space in Central County.