Industrial leasing activity in the San Diego area is proceeding at a record-breaking pace, according to a third-quarter study by Grubb & Ellis Commercial Brokerage Services.
The total of 3.9 million square feet leased so far is ahead of the record set last year, with the final quarter still to be tabulated.
However, according to Rich Kwasny, Grubb & Ellis senior marketing consultant, San Diego's population is becoming more evenly distributed, with most of the recent expansion occurring in the northern, southern and eastern regions of the county. "As freeway congestion mounts and commuting to the central industrial areas becomes more difficult," he said, "industrial development is moving to where the demographics are."
As an example, Kwasny said that the North Central area, which formerly accounted for the greatest percentage of industrial leasing, dropped from a market share of 44% at the end of 1986 to 31% as of Sept. 30, 1987. During the same period, South Bay's market share increased 18% and North County's share increased 7%.
"The opening of Otay Mesa as a new South Bay industrial market accounted for 10.7% of all countywide leasing during the first three quarters of the year," Kwasny said.