Peter Conte

Industrial continues to stand out as one of the strongest performing asset classes across California’s commercial real estate. We've seen development activity slowed over the past year, but early trends and experts from the Winter 2026 Allen Matkins/UCLA Anderson Forecast California Commercial Real Estate Survey are suggesting that project pipelines are beginning to rebuild — financing is getting a little easier, but building is still expensive. ⬛️ For developers and investors, the window to position the next generation of projects is now. ⬛️ The projects getting entitled and positioned today will be the ones ready to capture the next wave of demand and rent growth. At EPD Solutions, we work alongside developers, public agencies, investors, and owners to navigate complex entitlement and environmental planning processes across California. By aligning site strategy, environmental analysis, regulatory approvals, and development timelines early in the process, we help clients reduce risk, accelerate project delivery, and position industrial projects for the best economic value. Contact us to talk about your next project - https://lnkd.in/gxEVZY8j

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San Francisco Office Market Shows Resilience with 10.4MM SQFT in Tenant Demand Across 400+ Active Requirements San Francisco’s commercial office market is demonstrating signs of stabilization as it closes out 2025, with tenant demand reaching 10.4 million square feet across more than 400 active and pending requirements, according to the December 2025 San Francisco Market Snapshot by Newmark Research. https://lnkd.in/g7ZqMMma

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22.2 million square feet. That's how much industrial sublease space is available right now in Southern California in the +100,000 SF size range. I analyzed all 81 properties across 5 counties. Here's what the data is telling us. GEOGRAPHY The IE accounts for 74% of the total SF, 16.4M SF across 44 properties at $12.16/SF. Riverside alone has 8.7M SF, more than LA, Orange, and Ventura counties combined. LA/OC Metro is tighter: 37 properties, 5.8M SF, $15.33/SF, which is a 26% premium driven by proximity to ports and population centers. SIZE 21 properties fall in the 100,000–150,000 SF range, the sweet spot for regional 3PLs. 23 properties are over 500K SF, including 6 over a million. Nearly 40% of all listings exceed 300,000 SF. That's not incremental right sizing, that's structural overcapacity from the post-COVID logistics boom unwinding. VINTAGE Modern spec (2010+) averages $12.63/SF. Legacy (pre-2010) averages $14.00. Newer is cheaper, because the modern product is concentrated in the IE and the legacy sits in infill LA/OC locations. Geography drives pricing more than building quality. Half this inventory is less than 25 years old. These aren't obsolete buildings, they're functional distribution facilities. CLEAR HEIGHTS 54% of the subleases have 32'+ clearance, which is the modern standard for racked storage and fulfillment. 15 buildings at 30', 22 buildings at 32', and 7 at 40'. If you need modern clear heights, there's more sublease product at below market rents than at any point in my 20 year career. WHAT THIS MEANS The recovery is being forecast but for those in the trenches there is a lot more work that needs to be done to realize it. For tenants with leases expiring in the next 18 months, this is your window to shine in this cycle. We're doing this for clients across the country who are right sizing and can help you size up sublease opportunities right away. Grant La Bounty Chris Vassilian

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6 Comments

One of the Bay Area's largest life-sciences landlords is repositioning more of its development sites for housing as biotech oversupply reshapes the market.

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✨ San Diego Medical Office | Q3 2025 Highlights ✨Cushman & Wakefield SUPPLY AND DEMAND #Vacancy in San Diego’s medical office sector edged up slightly to 6.4%, rising 10 bps QOQ but improving 60 bps YOY, highlighting the market’s continued resilience and tight fundamentals despite broader economic uncertainty. INVESTMENT & OCCUPIER INSIGHTS #Demand for care across the region continues to attract both investors and occupiers, especially those aligning services with shifting demographics and patient needs in North County and I-15 Corridor submarkets. PRICING TRENDS #Rents climbed to $3.82 psf (full-service), up 6.1% YOY, with the I-15 Corridor (+9.2%) and Mid-City (+7.2%) leading growth. Class A assets saw steady appreciation as healthcare providers prioritized strategic, high-need locations. #SanDiego #MedicalOffice #HealthcareRealEstate #CRE #CushmanWakefield #MarketInsights #Q32025 #JRCampion Nehal Wadhwa Matthew Melendres

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UC San Diego Health CFO Carlos Bohorquez provided new detail on the recently formed Palomar UC San Diego Health joint powers authority, confirming that UC San Diego Health made an approximately $160 million capital commitment to the partnership. The strategy is designed to stabilize Palomar’s financial position while expanding higher-acuity clinical programs in North San Diego County so patients can receive more care within their community. From a healthcare real estate perspective, the significance goes beyond the JPA itself: a $160 million capital commitment combined with plans to expand clinical programs could influence future utilization, outpatient locations, campus investment and facility strategy across Palomar’s Escondido and Poway markets. #healthcarerealestate #medicaloutpatientbuilding #medicalrealestate #UCSDHealth #PalomarHealth #SanDiego #SouthernCalifornia #healthsystems #healthcare #cre https://lnkd.in/gd8fyyuJ

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