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Loren Faulkner

Industrial Space Construction Strong In Inland Southern California
July 27, 2008

A press release from Marcus & Millichap’s Midyear National Industrial Report www.MarcusMillichap.com gives a snapshot of what industrial construction/occupancy will look like in San Diego by the end of this year.

The commercial real estate and investment services firm highlights the San Diego area this way:

--Developers will deliver 2.1 million square feet this year.

--Vacancy is forecast to end the year at 9.4 percent.

--Asking rents are expected to reach $10.83 per square foot, an increase of 1.8 percent.

--Effective rents will average $10.21 per square foot, a 1.6 percent gain.

--Tenant demand for industrial properties in Poway and Rancho Bernardo in particular may increase in the long term, underpinning healthy revenue growth.

At the same time, the Inland Empire’s Press Enterprise www.PE.com, is reporting that Marcus & Millichap’s Real Estate Investment Services is forecasting that Riverside and San Bernardino Counties are going to have constructed some 22.5 million square feet worth of industrial space by the end of 2008. Even in softer economic times, that is quite a jump beyond their reporting of 18.7 million square feet of industrial space constructed in the two counties in 2007.

Posted by Loren Faulkner on July 27, 2008 | Comments (0)