Market Trends
- Growing vacancy, now up 330 basis points (bps) year over year, has been led higher by consecutive quarters of negative net absorption of which through the first half of 2024 totals -1.4 million square feet (msf).
- The South County submarket, near Otay Mesa, hosts 73.0% of the current construction pipeline, including Amazon's 1.1 million square foot (msf) building at 6980 Otay Mesa Road, the largest active project in the market.
- Despite the delayed opening of the Otay Mesa East Port of Entry this year, speculative projects underway in the South County submarket are set to absorb occupier demand seeking close border proximity and a cross-border labor pool.