Market Trends
- The market’s vacancy rate ended Q1 2026 near historic highs, rising 140 basis points (bps) year over year ending Q1 2026 at 9.2%. Deliveries outpaced net absorption year to date, keeping vacancy rates elevated.
- The largest project currently underway is a 437,080 square foot (sf), twobuilding speculative development at Otay Mesa Business Park. Construction has remained below 1.0 msf for the past three quarters.
- Given the market’s increased vacancy and top transactions driven by renewals, tepid-to-flat rent growth and increased concession packages can be expected.