The Chula Vista Industrial Center. Chula Vista is among the hottest markets for industrial leases. Photo credit: Courtesy, Cushman & Wakefield

Opposite sides of San Diego County make up two of the hottest sectors of this year’s industrial leasing market, according to a new analysis.

Tenants leased the most space in Otay Mesa, followed by Carlsbad, Vista, Miramar and Chula Vista, the firm Cushman & Wakefield noted in the report.

Together, those areas accounted for 70% of the 6.9 million square feet of industrial space leased in the county this year, researchers noted.

Of the companies entering into the leases:

  • 24% represent retailers
  • 21% are in manufacturing
  • 13% are in warehousing, utilities and transportation
  • 10% represent life sciences, and
  • 7% are wholesalers.

Since last year, rent prices have risen to an average of $1.16 per square foot, up 5.5%, according to the report. The price for research and development space was up 6.1% to $1.57 a square foot, while local manufacturers recently have paid an average of $1.04 per square foot.

Overall, the analysts said, the average lease term is just over four years.

The researchers note that the outlook for demand in both the industrial and office markets appears rosy due to continued employment gains in the wake of the pandemic. Growth of 2% is expected this year, with 4.5% projected in 2022.

Hot areas for office spaces include Sorrento Mesa, Torrey Pines, Del Mar Heights, Rancho Bernardo and Carlsbad, with life sciences and tech dominating the market.

One of the highest-profile lessees in the mix is Apple, according to the report. The tech giant took over 140,000 square-feet of space in UTC, while adding to spaces in Eastgate and Rancho Bernardo and planning for more growth in the next 12 months.

That includes a major project, a San Diego campus, the analysts noted.