Market Trends

• Vacancy in the San Diego market has continued to climb since early 2023, up 360 basis points (bps) from Q1 2023. Deliveries of new construction have provided the catalyst for higher vacancy, as buildings constructed in 2023 and 2024 are 22.0% leased.
• The South County submarket leads in practically every metric, from highest vacancy to construction. The submarket makes up nearly 50% of the 1.6 million square foot (msf) construction pipeline and remains over 90% available.
• As of Q1 2024, site work for Phase I of Elevation Land Company’s OtayBusiness Park was underway. Phase I of the master-planned development is set to deliver just shy of 1.0 msfof speculative warehouse product in the South County submarket.

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