Oceanside Industrial Leasing: A Tight Market with Steady Rent Growth
Oceanside’s industrial leasing market is currently showing a tight squeeze, with a vacancy rate sitting comfortably low at 3.9% as of early 2025. Interestingly, even though no new industrial space in Oceanside came online in the past year. However, about 59,000 square feet of existing space was leased. This activity nudged the vacancy rate down slightly by 0.6%. It signals consistent demand for commercial and industrial properties for rent in this coastal San Diego submarket. Historically, Oceanside’s industrial vacancy has averaged around 3.0% over the last five years and 3.8% over the past decade. So the current rate isn’t drastically out of the norm, but it does indicate a relatively healthy level of occupancy for Oceanside industrial rentals.
LEASING HOLDS STRONG
For those actively seeking industrial space for lease in Oceanside, there’s roughly 550,000 square feet currently listed as available. This translates to an availability rate of 5.4%. Availability may include sublease and occupied space, which adds to the vacancy rate. One notable characteristic of the Oceanside industrial leasing is the lack of recent construction. In fact, there hasn’t been any new commercial property for lease Oceanside development in the area for the past ten years. This lack of new supply likely contributes to the steady demand for existing Oceanside industrial properties for rent.
OCEANSIDE SPACE OPTIONS
The industrial property inventory in Oceanside is diverse. It encompasses approximately 5.4 million square feet of logistics facilities, around 960,000 square feet of flexible-use buildings, and about 3.7 million square feet of specialized industrial assets. When it comes to the cost of entry, market rents for industrial properties in Oceanside are averaging around $1.43 per square foot. Digging deeper, logistics spaces are typically renting for about $1.38 per square foot. Flex properties command around $1.66 per square foot, and specialized buildings are going for approximately $1.42 per square foot.
RENTS & TRENDS
Looking at the trend in property rent in Oceanside, we’ve seen a modest increase of 2.4% over the past year. It mirrors the overall market-wide growth. This growth is fairly consistent across different warehouse and industrial property types. Logistics rents are up by 2.1%, flex rents by 2.2%, and specialized property rents are seeing a 2.9% rise. Over a longer horizon, the average annual rent growth for industrial properties in Oceanside has been quite robust. It’s at 7.0% over the last five years and 6.7% over the past ten years.
OCEANSIDE INDUSTRIAL OUTLOOK
As prices rise in nearby submarkets, Oceanside remains attractive for businesses needing a warehouse for rent with flexibility and accessibility. While Oceanside might not be a hub for the cutting-edge tech and biotech industries like some other San Diego submarkets, its established industrial base and limited new construction suggest a stable demand for existing warehouse and industrial properties for lease and rent. The consistent absorption of space indicates that businesses find value in Oceanside’s location and infrastructure. The steady rent growth over both short and long terms also points to a healthy and potentially appreciating market for those looking to rent industrial property Oceanside. As other submarkets in San Diego become more expensive, Oceanside could become an increasingly attractive option for businesses seeking more affordable industrial space and commercial property for lease opportunities.
“In a world where business is built on location, Oceanside’s industrial space offers more value than comparable space in adjacent submarkets.”
Explore the opportunities available in Oceanside today and contact us to discuss your industrial leasing options.
