Snapshots

2018’s development pipeline was active countywide, totaling 4.5 million square feet of deliveries by year end

The San Diego commercial real estate market in 2018 had a total of 6.8 million square feet (s.f.) of development countywide.

The San Diego commercial real estate market in 2018 had a total of 6.8 million square feet (s.f.) of development countywide. Office, industrial, lab, and medical office are scheduled to have an approximate total of 4.5 million s.f. of new deliveries by year end. This years new development deliveries for all the property types combined is scheduled to be 25 percent higher than the last cycle peak’s total of 3.6 million s.f. in 2008.

This current cycle has seen a stark difference with the property types that are leading the way in new development compared to the last cycle. For example, with the last cycle peak in 2008 office and medical had the bulk of the deliveries with a combined total of 2.7 million s.f., where in 2018 they only have a total of 1 million s.f.

Today, developers have shifted their focus to build more lab and industrial due to high demand from the bourgeoning life sciences and e-commerce industries. This year is scheduled to have a combined total of 3.8 million s.f. of new deliveries for both the industrial and lab segments compared to only 865,000 s.f. back in 2008.

Source: JLL Research, ESRI

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