Industrial Development Stuck in Neutral
Industrial development in central, east, and south San Diego isn’t going to increase dramatically in the next 12 to 24 months, Colliers International SVP Bob Mooney and VP Greg Kelly tell us. That’s because the available supply of approved or Final Map-status industrial land is limited, except for in Otay Mesa, where there’s a moderate amount. “The scarcity in most submarkets creates a high land value that drives the overall development cost well above current building values,” says Bob.
In Otay Mesa, for instance, the cost PSF for a new building, including the land, is about $20 to $30 higher than values for current buildings, Greg tell us. Rather than building, investors interested in San Deigo industrial are buying, with plans to take advantage of the shortage. Recently, Colliers repped Performance Wealth Investments in its purchase of a 19k SF office and warehouse building at 10065 Via De La Amistad, San Diego. Darren Mullins of Cassidy Turley represented the seller, City National Bank.
