It's no secret that Carlsbad has recently become a hotbed for high-end research and development (R&D) and corporate headquarter properties -- one need only drive along Palomar Airport Road.
According to Grubb & Ellis|BRE Commercial, Carlsbad's industrial base is the largest in North County, and yet strong demand for more space remains. Market fundamentals remain positive in 2006, recording over 190,000 square feet of positive net absorption for R&D product year-to-date, which bodes well for the coming development in the city. As of first quarter 2006, new leases have reduced the direct vacancy rate to 10.7 percent and rental rates are on the rise. The tightening industrial market in Carlsbad has created demand for new development in several markets segments, including several projects that Grubb & Ellis|BRE Commercial brokers are involved in selling and leasing: Opus Point, Greyhawk Business Center and Concourse One at Palomar Forum.
Opus Point: In May, Opus West Corp. broke ground on the first phase of its 43-acre development at the Carlsbad Raceway known as Opus Point. Phase I will hold approximately 328,000 square feet of office and R&D space with completion scheduled for late 2006. In November 2005, the company acquired the first 25 acres (Phase I) for $16.25 million.
Located just north of the intersection of Melrose Drive and Palomar Airport Road, Opus Point will ultimately encompass 583,000 square feet of office, R&D and manufacturing buildings. Opus West is currently completing the acquisition of 18 acres of land for Phase II of Opus Point, which will encompass 255,000 square feet of speculative office and R&D facilities. Opus West plans to break ground on Phase II in early to mid 2007 with anticipated completion in late 2007. The total project cost is anticipated to exceed $105 million.
Greyhawk Business Center at Palomar Forum: Walls were raised during first quarter at Greyhawk, a 28-building industrial/R&D project being developed by Davis Partners, totaling over 208,000 square feet. The project is part of The Palomar Forum, the 430,000-square-foot master-planned project located at the northeast corner of Melrose Drive and Palomar Airport Road in Carlsbad. Greyhawk is located at the east portion of the project and is expected to be completed in third quarter 2006.
Concourse One at The Palomar Forum:
Construction began in Q1 on Concourse One, a 75,000-square-foot, Class A office building located at 3207 Greyhawk Court. The two-story, high-image office building is expected to be completed and ready for occupancy in the third quarter 2006.
The development is a joint venture between Somera Capital Management, LLC and San Diego-based LW Properties, LLC. The 5-acre site on which the building is being constructed was purchased in September 2005 from Palomar Forum Associates L.P.
Concourse One is currently available for pre-leasing with spaces ranging in size from 5,000 square feet to 75,000 square feet.
For more information about Grubb & Ellis|BRE Commercial, visit www.brecommercial.com.
Submitted by Grubb & Ellis|BRE Commercial.