Ballast Point Brewing Inks 107,000-SF Lease with HG Fenton in Miramar

As the housing market in San Diego is doing better, the city’s industrial market is also seeing awareness brought to it. A major leasing agreement was recently completed for a facility in the Miramar submarket, as local company Ballast Point Brewing and Spirits is set to occupy the commercial property located at 9045 Carroll Way. The value of the agreement stands at around $16 million, making it one of the largest deals of its kind in San Diego this year. The agreement was brokered by Voit Real Estate on behalf of both the tenant and landlord HG Fenton.

 As metropolitan San Diego’s residential picture improves, the industrial market is also attracting renewed activity. Ballast Point Brewing and Spirits, a local craft brewer, signed a 15-year lease for 106,584 square feet at 9045 Carroll Way in the Miramar submarket. At $16 million, the value of the deal is one of the largest of its kind in the area this year.

Ballast Point will use the space as its main brewery, bottling and canning facility and plans to start production there by next summer. Voit Real Estate arranged the deal for Ballast Point and HG Fenton, the property’s owner.

San Diego’s industrial market appears positioned for growth through 2014, according to research by CBRE Group Inc.

Current average prices of about $12.60 per square foot could rise to nearly $13 per square foot by the third quarter of 2014. During the next 12 months, the vacancy rate could dip 70 basis points from its current average of slightly more than 8 percent, according to CBRE’s projections.

Chart courtesy of CBRE Global Investors at cbre.com

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