by Marie Cappello, Broker, Argossy International.
The Chula Vista Industrial Market:
When most people think of Chula Vista, they picture sunny coastal communities and a laid-back suburban lifestyle. But for those of us in the know, Chula Vista is a strategic industrial powerhouse—and right now, it’s one of the most interesting plays in all of San Diego County.
Here’s the breakdown of what’s happening on the ground:
Market Trends: A Tale of Two Stories. The industrial market across San Diego County is seeing some changes. Overall industrial vacancy has risen to 7.7% in Q2 2025, the highest since 2013. You might hear this and think the market is softening, but that’s only part of the story. The biggest challenge is the significant new construction concentrated in the South County, specifically Otay Mesa. This new product is accounting for a lot of the rising vacancy numbers.
But Chula Vista itself is a different story. It’s part of a South County submarket that has seen some of this new supply, but it has a unique mix of older, well-located properties and new, high-end builds that attract specific tenants. This submarket’s industrial vacancy for warehouse/distribution space did tick up, but demand for smaller, sub-50,000 SF spaces remains incredibly strong.
Leasing & Sales Data: Stronger Than You Think. While new construction has put some pressure on overall vacancy, it hasn’t killed pricing. The average sales price per square foot across San Diego County is actually up 14% year-over-year to $308, indicating that the assets that are trading are high-quality and holding their value. In Chula Vista specifically, you can find a wide range of rental rates depending on the size and age of the property, with asking rates averaging around $1.49 per square foot per month on a triple net basis. Some larger, older spaces go for less, but a prime, modernized location can fetch more, especially in a market where tenants are “flight to quality.”
Industrial Inventory & Economic Drivers: A Diverse Mix. Chula Vista’s industrial landscape is a mix of older, well-maintained buildings and newer, high-image facilities. The city’s core industries are not just logistics and distribution, but also advanced manufacturing. For example, a major employer in the region, Collins Aerospace, is located in Chula Vista. This speaks to the city’s role in the supply chain for complex manufacturing and tech. Looking at the data, manufacturing tenants were the most active, accounting for 31% of leasing volume in the last quarter—a clear sign of the market’s strength beyond simple warehousing.
Future Outlook: The Bayfront Effect. The most compelling story in Chula Vista is the long-term vision. The Chula Vista Bayfront is undergoing a massive, multi-billion dollar redevelopment, transforming a former industrial area into a world-class destination. While this is primarily focused on hospitality and residential, it will create thousands of permanent jobs and spur an economic renaissance that will have a ripple effect on the entire city. This kind of investment and growth creates a powerful, long-term tailwind for the entire Chula Vista commercial market, including industrial. The future is bright, and the time to get in is now.
- To get the full picture of the San Diego industrial market, including Chula Vista, you can access the latest report from Cushman & Wakefield.
- For more great investment opportunities, visit our website.
