San Diego is undergoing significant transformations, particularly in its downtown area, as it navigates the post-COVID era. Despite high interest rates dampening new construction, several key projects are set to be completed in the second quarter of 2024, marking a new era of growth and development.
The Campus at Horton, a redevelopment of the former Horton Plaza mall by Stockdale Capital Partners, is one of the prominent projects. Alongside this, Holland Partners and Lowe are constructing West, a mixed-use tower featuring apartments and commercial space on the former site of the San Diego County Superior Court. Additionally, IQHQ’s waterfront development, RaDD, is another significant project that will contribute to the city's evolution.
These developments are expected to bring nearly 2.4 million square feet of office and life science space to downtown San Diego. While the current demand for office space is weak, with vacancy rates at 27.1% in the first quarter of 2024, the retail components of these projects are already seeing early success with multiple leases signed and preleasing underway[1].
Experts like David McCullough, principal landscape architect at McCullough Landscape Architecture, believe that San Diego’s urban core is maturing. McCullough notes that the city is transitioning into a 24-hour city, a change that is necessary for its growth. He also highlights that San Diego is setting a national standard for urban development, particularly with zoning changes that facilitate development near transit areas[1].
The residential market is also poised for significant growth, with Alberto Lopez, project manager of Project Management Advisors, predicting an influx of residential high-rise developments. This trend is part of a broader shift where downtown office space may be converted to non-traditional uses such as manufacturing, distribution, or even self-storage[1].
Beyond downtown, San Diego is experiencing robust growth in various sectors. The region has been ranked the fifth-best ecosystem for venture capital in the U.S., with startups securing over $4.37 billion in funding in the first three quarters of 2024. Notable developments include Alexandria Real Estate Equities' partnership with Eli Lilly on Gateway Labs at One Alexandria Square and Breakthrough Properties' fully-leased Torrey Pines campus with tenants like BD and Pfizer[4].
In the life sciences sector, companies like Crinetics Pharmaceuticals and Maravai LifeSciences' TriLink BioTechnologies are expanding their presence in Sorrento Valley. Crinetics Pharmaceuticals has added 100 employees, while TriLink BioTechnologies has opened a 32,000-square-foot mRNA manufacturing facility. Additionally, LA-based Snap Inc. is set to open a satellite office in Del Mar, further solidifying San Diego’s reputation as a hub for technology and innovation[4].
These developments underscore San Diego’s resilience and its ability to attract new industries and companies, positioning the city for continued growth and development in the coming years.
This content was created in partnership and with the help of Artificial Intelligence AI
