The Downtown San Diego office market is robust, with single-digit class-A vacancy, Scott Schindler, a broker with JLL, tells SoCal Real Estate. The firm recently released its Q3 office report on the submarket.
“Developers are banking on the highest projected population growth in San Diego County to continue to drive demand for fresh office space,” Schindler says.
While demand for creative redevelopments is surpassing that for traditional class-A office space in submarkets like Sorrento Valley and Mission Valley, Downtown’s class-A office owners are instead reinvigorating their buildings with creative intentions, Schindler says. “From common-area renovations to energize their creative tenant base and inspire collaboration, to creative open-floor plan build-outs within their suites, class-A office towers remain in demand.”
Schindler adds that as far as new pockets of office development emerging in the Downtown submarket, the East Village is continuing its redevelopment with the I.D.E.A. District, Makers Quarter, and the remodel of the old Thomas Jefferson School of Law. “The quick success of East Village’s most recent office project, Block D, has bolstered the confidence of these developers.”
Schindler points out that new office tenants are drawn to the Downtown San Diego market because that’s where the talent is and that companies seeking to compete for millennial talent are recognizing the need to locate their offices near where they work.