The latest trends, data, and guides in commercial warehousing to help you make informed decisions.
San Diego County’s industrial and warehouse market entered 2026 in a stabilization phase after several years of strong development and demand. While vacancy has increased—particularly in Otay Mesa and South County—the region’s strategic logistics role, cross-border trade activity, and limited industrial land supply continue to support long-term demand.
February 18, 2026
The Inland Empire remains one of North America’s most important logistics hubs, supported by its proximity to the Ports of Los Angeles and Long Beach and a vast regional distribution network. After a record construction wave, the market entered 2026 in a recalibration phase marked by elevated vacancy, softer rents, and a sharply reduced development pipeline. While deliveries recently outpaced absorption, leasing activity remains strong by national standards, and long-term fundamentals continue to be driven by e-commerce demand, port throughput, and the region’s deep transportation workforce.
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