ARROYO BUSINESS CENTER
Arroyo Business Center is a multi-tenant industrial project developed in 1987 consisting of 2-buildings totaling 63,893 SF in Carlsbad. The property is currently 100% leased to 9-tenants, with an average unit size of 6,389 SF. The property is fully sprinklered with 18’ clear height in the warehouse and 16 grade level roll up doors for loading access to each individual unit. With a floor area ratio (FAR) of 25%, the property offers an excellent parking ratio of 2.4/1,000 sf. The property is in the heart of the Carlsbad industrial submarket, west of El Camino Real which bifurcates the market between lower quality heavy-manufacturing buildings to the east. The asset is located just south of the Palomar Airport, 3 miles east of the I-5 Freeway in between the major economic hubs of Orange County and San Diego.
The 39.1 square miles of Carlsbad, 35 miles north of downtown San Diego and 30 miles south of Orange County, is home to over 115,000 residents. Home to the McClelland-Palomar Airport, San Diego’s busiest single-runway airport, Carlsbad has premier accessibility to national and regional locations. This accessibility has catapulted Carlsbad to an executive-housing community with Southern California culture.
Residents of Carlsbad are highly educated, with over 60% of the population over 25 having a bachelor’s degree or higher. The 5-mile radius surrounding the property is home to over 215,000 residents and is among the nation’s top 20 wealthiest communities. Carlsbad ranks 5th of California’s wealthiest cities with an average household income over $127,000.
Carlsbad is home to a diverse base of leading life science companies including biotech, medical device, diagnostic, and technology companies. Carlsbad is also known as the “Golf Capital of the World,” serving as headquarters for prominent names including Puma-Cobra Golf, Titlelist, Callaway, and TaylorMade-Adidas. The skilled employment base and proximity to the local residential market is pushing demand for tenants to locate in the Carlsbad market.
CARLSBAD INDUSTRIAL MARKET
Carlsbad is North San Diego’s largest and most sought-after submarket. The North County industrial market of San Diego includes 52.3 million square feet of industrial product. Carlsbad is the largest submarket within the North County and is supported by the I-5 arterial freeway. The first half of 2018 experienced over 350,000 sf of positive net absorption. In 2018, several SPEC high bay distribution projects were delivered to the market, resulting in a vacancy rate just over 7%. These vacant buildings do not compete with the multitenant product type of Del Abeto. There are 409 existing industrial buildings totaling 14.8 million square feet.