Ted Cuthbert Cuthbert: “I haven’t seen in my 30-year career the kind of escalation in land prices or warehouse rental rates we’ve been seeing.”

SAN DIEGO—Last-mile delivery services like FedEx, UPS and OnTrac are stepping up their demand for warehouse space in San Diego, making 2018 one of the strongest years for new industrial construction in the region in 19 years, Colliers International senior EVP Ted Cuthbert tells GlobeSt.com. According to a recent report from the firm, 2017 ended at 4.2%, the lowest level of San Diego industrial vacancy ever recorded, and new construction is expected to push rental rates higher in 2018. We spoke with Cuthbert about the drivers behind this industrial boom, which submarkets will benefit from it and the types of buildings and users that can be found here.