Industrial markets across Southern California have seen significant growth in recent years, with record low vacancy rates and properties selling at increasingly high prices. San Diego is no exception. According to a recently published first quarter industrial market report from Kidder Mathews, a 216,519 square-foot distribution center in San Diego’s Rancho Bernardo community sold to Irvine-based investment company LBA Realty for $96 million, or about $540,064 per square foot. The seller in the transaction was Link Logistics Real Estate.
Located at 11035-11055 Technology Place, the Rancho Bernardo Distribution Center features three buildings situated on 10.85 acres. The property is home to several tenants, including Genesis Logistics and D&K Warehouse. However, a recent marketing brochure from CBRE shows approximately 99,000 square feet of the building remains unoccupied.
The property is also surrounded by several other distribution and warehouse buildings, with occupants including FedEx, Amazon and Northrop Grumman, among others. Additionally, the property is within driving distance of Interstate 15, providing easy access to the rest of San Diego.
Throughout San Diego, industrial activity has been on the rise over the last several years. According to the report from Kidder Mathews, industrial vacancy across the region has decreased by more than 43 percent. As of the first quarter of 2022, industrial vacancy rates in San Diego hit 2.9 percent. As the market grows tighter, sales prices in the region also have hit a record high of $437 per square foot.
