Warehouse Space Drives Rent Growth in San Diego

Paul Britvar

Warehouse and distribution buildings have driven the majority of San Diego rent growth activity in recent years. According to a new report from Newmark Knight Frank, rents for warehouse and distribution space have increased more than 50% in the last five years. San Diego has a diverse pool of industrial users, including life science and R&D activity, and warehouse spaces are the most popular for the region’s user base.

“Warehouse and distribution space is the root for so many product types, and as such is the main driver of industrial rents in San Diego,” Paul Britvar, director at Newmark Knight Frank, tells GlobeSt.com. “At present, Flex, R&D, manufacturing, life science buildings, GMP manufacturing operations and some creative office developments are all derived from simple warehouse buildings, which sets the stage for a balancing act between the availability of warehouse buildings and other product types that are converted into a new use.”