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Office, industrial real estate markets on the rebound.

Article Excerpt
San Diego's office and industrial real estate markets have reflected the region's resilient economy throughout the first half of 2004, according to Grubb & Ellis|BRE Commercial (G&E|BRE), one of the leading providers of integrated real estate services. Economic indicators portend continuing improvement into 2005 as well.

"The San Diego office market at midyear continued to show positive signs of improvements across the board, and the industrial market at midyear was in fine shape," said Eli Gilbert, G&E|BRE director of research.

"The strong economy, powered by active capital spending, a white-hot housing market and increased consumer confidence, is echoing into the office market, while the region's industry clusters--from defense to high-tech, tourism to finance--are doing very well and actively expanding throughout the county," Gilbert said.

Although the regional office direct vacancy rate continued to hover around 10 percent, in part due to new office facilities coming online, San Diego recorded its seventh consecutive quarter of positive net absorption at midyear.

"Overall, the regional office market has chalked up positive net absorption of more than 1 million square feet since spring 2003," he said. "Countywide, average full-service asking rents, which had been fiat for the last two years, increased substantially in Q2 2004, from $2.28 to $2.32 per square foot per month. With large...

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