San Diego Warehouse Space: Defense, Life Sciences and a Market Built for Diverse Demand

By Sam Laird

San Diego industrial real estate serves an economically diverse county that is the fifth largest in the U.S. and the second largest in Southern California. In this Q&A, Link Logistics senior vice president and San Diego market officer Bryson Lloyd discusses what drives demand for San Diego warehouse space, how the market's three distinct submarkets differ and what infrastructure investments are positioning the region for long-term industrial growth.

What drives demand for industrial real estate in San Diego?

Bryson: San Diego's industrial real estate market is defined by its diversity. The tenant base spans defense, energy, construction, food and beverage, medical devices and life sciences, electronics and advanced manufacturing. That breadth is a direct reflection of the county's size and economic complexity—with a population this large and a business community this varied, there's a broad and sustained need for industrial real estate across a wide range of uses.

How do San Diego's warehouse submarkets differ in terms of the users they attract?

Bryson: Each of the three main San Diego industrial submarkets has a distinct profile. South County, including Otay Mesa, primarily attracts distribution and logistics users, driven by the type of inventory stock and proximity to labor across the border. Cross-border trade with Mexico is a meaningful demand driver for industrial space in this submarket.

Central County has high barriers to entry given tight supply and a lack of developable land. Its central location makes it highly desirable—it’s close to the county's core population and labor pools—and warehouse space there attracts the full spectrum of distribution and manufacturing users, from last-mile distribution to construction, defense, food and beverage, and electronics.

North County has historically drawn a mix of user types, including lower-finish distribution users and higher-finish life science users and manufacturers. The submarket sits closer to larger population and labor pools than South County, which has made it attractive across user types. Life science demand for industrial space surged in the early 2020s on the back of post-pandemic tailwinds and significant capital inflows, but that wave has moderated as market conditions have normalized in a cycle that has left supply and demand working toward rebalance.

What trends are shaping the San Diego industrial real estate market?

Bryson: Two things stand out. First, defense-related users are driving a growing share of demand across the county, particularly in Central County. Companies like Firestorm Labs, Anduril, Seasats and Saronic Technologies are among those looking to expand locally, reflecting San Diego's long-standing position as a hub for defense and advanced technology.

Second, renewal activity has been a dominant theme in the leasing market. With limited available industrial product across San Diego County—particularly Class-A warehouse space—tenants in functional, well-located Class-B space have little incentive to move. Relocation requires finding a viable alternative, and in a market where quality industrial space is hard to come by, many businesses are choosing stability over the disruption and cost of a move. 

Looking ahead, what's the opportunity for businesses considering San Diego for warehouse and logistics operations?

Bryson: San Diego has a number of infrastructure investments that should be compelling for warehouse and logistics users. A new port of entry at Otay Mesa is being purpose-built for commercial freight, which will meaningfully improve cross-border logistics capacity. San Diego International Airport is undergoing a significant expansion—including landside road reconfiguration, transit-ready infrastructure and expanded air cargo facilities—that will enhance the region's freight capabilities. And Caltrans has major freeway rehabilitation work underway, aimed at improving freight velocity across the county.

Taken together, these projects point toward a market that is actively investing in its long-term industrial and logistics competitiveness. That investment is underpinned by a built-in demand driver: San Diego’s dense, growing population creates a persistent need for the goods and services that warehouse and logistics operations provide. For businesses with cross-border operations, regional distribution needs or advanced manufacturing requirements, San Diego offers a combination of infrastructure, workforce and industry diversity that's difficult to replicate.

How does Link Logistics support companies looking for San Diego warehouse space?

Bryson: Our San Diego portfolio is concentrated primarily in North County and South County, with product offerings that span small-bay and bulk configurations as well as both lower-finish and higher-finish space. That range gives us the ability to serve a variety of user types—from traditional distribution to life sciences and advanced manufacturing—backed by institutional-quality management.

Explore available warehouse and distribution space in San Diego to learn more about industrial real estate opportunities in Southern California.