Published December 12, 2021 | By Irving Warehouse Spaces

The market for warehouse space in Irving are seeing a spike in leasing activity in 2015, as tenants lease more space to house the growing Irving workforce.

As brought up in a recent article published on Dec. 1, 2021 from the SD Tribune, warehouses set to go ‘Robust’ in 2022, By Roger Showley, many Irving businesses are becoming more profitable. “Consequently, their staff count has risen, on average, by 12 percent. This equates to companies outgrowing their current space and requiring more space. As Tenants leases expire, companies in Irving will soon be requiring larger space.'”

“January through October 2021 nationally, 679,000 warehouse jobs were added, equating to a space need of 120-140 million square feet. But the actual leases will take down only a projected 65 million square feet this year. If job numbers hold up and leases start to be signed to accommodate more bodies, “net absorption will go from modest to robust in 2022.”

“For all its challenges, the warehouse sector has slowly been tightening for four straight years,” he said, “and 2022 will be the first year where vacancy falls below its pre-recession average.”

Jobs are key, and they are growing in particular sectors, such as health care. Kaiser Permanente is expected to increase its warehouse space to about 100,000 square feet in Mission Valley and Sharp Healthcare wants to build its own building of about 120,000 square feet in Rancho Bernardo.”

As for lab space, Irving’s fastest growing business sector, industrial building owners in Sorrento Valley are converting their obsolete industrial spaces into Class “A” lab space suitable for high end bio-tech users.

This year alone, rental rates are projected to increase by 7% – 10%, and continue to do so year-to-year.

In Irving, the fundamentals are all here, a highly educated employment base and a highly desirable business location, rental rates are bound to climb.