San Diego Ranks Among Top-Five Industrial Buy Markets

Schreck: “While the whole Western region is benefiting from heightened trade and distribution activity, San Diego stood out, in particular, due to its potential for future growth in rents and NOIs.”

SAN DIEGO—While San Diego’s strong economy has shown recent signs of slipping, its industrial prospects remain among the brightest in the country, according to a recent report from Ten-X. The report ranks the region as one of the five top markets in the country in which investors should consider buying industrial assets.

“While the whole Western region is benefiting from heightened trade and distribution activity, San Diego stood out, in particular, due to its potential for future growth in rents and NOIs,” Matthew Schreck, quantitative strategist for Ten-X, tells GlobeSt.com. He says his firm expects San Diego industrial vacancies to decline through 2018, which will drive solid rent growth. “We’re also predicting a modest pullback in absorption, vacancies and rents amidst our downturn scenario in 2019-2020. During this period, San Diego has a better outlook than Orange County, partly due to the fact that Orange County vacancies are already very tight (2.8% in Orange County as opposed to 6% in San Diego).”