SAN DIEGO—San Diego's industrial sector achieved nearly 1 million square feet of occupancy growth between July and December of last year, with countywide vacancy reaching below 5% by year's end, according to a report by Cushman & Wakefield. This welcome finding comes after a relatively flat first half of the year.

Regarding the absorption outlook for Q1, C&W's research director for San Diego Jolanta Campion tells GlobeSt.com that the firm is currently tracking 2.8 million square feet of active industrial-tenant requirements for space over the next 24 months, and while not all tenants in the market will transact in the short-term, these levels provide a barometer of leasing activity in quarters to follow. “Evaluating industrial leasing activity, Carlsbad is expected to record the highest activity in the first quarter of 2018, followed by San Marcos, Sorrento Valley and Kearny Mesa.”

C&W's Bryce Aberg, executive director in San Diego, tells us that within San Diego County, the two bordering submarkets of Otay Mesa and Oceanside have also seen major positive strides in terms of sale activity, new construction, declining vacancy and increasing tenant demand, so the firm foresees continued activity here in those submarkets, too. “Further, we do not anticipate any slowdown in the near future and are very optimistic for the county as a whole.”