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SAN DIEGO-While the residential market is in flux, the local industrial sector posted strong gains during the fourth quarter, according to a report by Grubb & Ellis/BRE Commercial. The year ended with 3.2 million sf of positive net absorption and 84% of all submarkets in the county posted positive numbers.Net absorption numbers were up slightly from 2004, with the area experiencing just over three million sf of positive absorption. For 2005, large lease deals held sway. Among the largest deals: IPD Packaging inking 108,400 sf in Vista; Restaurant Depot leasing 93,138 sf in Miramar; Sea World Inc. taking 71,619 sf in Mission Valley; and Qualcomm agreeing to 67,995 sf in Sorrento Mesa.Oceanside topped the northern submarkets with 522,000 sf absorbed for the year; Rancho Bernardo pulled in 392,000 sf of positive absorption; and Vista landed nearly 360,000 sf. In all, the three submarkets combined for roughly 40% of the year's positive absorption. South County submarkets, including Chula Vista and Otay Mesa, accounted for some 35% of absorption.In all, Otay Mesa led the way with 400,000 sf absorbed during the fourth quarter alone and over 720,000 sf absorbed for the year. According to the report Otay Mesa's numbers "resulted from the relatively low cost of industrial land combined with the availability of larger buildings." Other factors fueling the submarket's success include the construction of SR-125 and "the improving industrial economy with Mexico."As for leasing rates, the asking rate for the county was $0.94 per sf per month. That number was a 5.3% hike from 2004. Also, 20 of the 25 submarkets raised rates since the end of 2004.Vacancy rates also posted strong numbers with the countywide vacancy rate holding at 6.8%. The county reached those numbers although Otay Mesa hit 20.2% "due to the level of newly constructed buildings added to the inventory."Otay Mesa had 345,000 sf of space under construction at year's end. In all, 3.3 million sf are in the pipeline for the county, with Sorrento Mesa's 480,000 sf and Vista at 326,000 sf adding to the inventory.