Family Office Briefing on research byMarcus & Millichap·May 22, 2026

San Diego Industrial Market Report - 2Q 2026

San Diego's industrial market absorbed 1.1 million square feet in the six months ending March 2026, ending 11 quarters of net relinquishment, but mid-10 percent vacancy persists with ongoing supply pressure.

IndustrialSan DiegoCalifornia2026

Key Metrics

Metric	Value	Change / Context
Net Absorption (6 months ending March)	1.1million SF	ended 11 quarters of net relinquishment
Vacancy Rate	mid-10%	first time since 2012
2026 Deliveries vs. 4-Year Average	-450,000SF	trails prior four-year average

Metrics extracted from the source report and independently fact-checked. Method →

How a family office could deploy

Co-GP / Platform Capital · share the promote

Partner with a San Diego industrial operator as co-GP or provide platform capital to fund their acquisitions of stabilized assets or pre-leased developments in the current elevated-vacancy environment, sharing the promote as the market re-absorbs space and cap rates compress.

Direct / Separate-Account Ownership

Acquire a single stabilized distribution facility or smaller multi-tenant flex property via separate account to lock in today's softer pricing and control repositioning or re-tenanting as absorption momentum builds.

LP Allocation

Commit to a sponsor's opportunistic or value-add fund targeting Western U.S. industrial markets with elevated vacancy and supply normalization ahead.

How family offices deploy capital into real estate →

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