Business owners in the Gaslamp Quarters in downtown San Diego will be enjoying a boost in potential sales after a new plan opens the doors, literally, to more outdoor dining options. The Curbside Gaslamp project will be a five-day a week event closing Fifth Ave. to traffic and allowing restaurants in the area to open their menus to customers outside. 

Not everyone is satisfied with the plan, however, because it only benefits business owners up to F St. Businesses on the opposite side of F St. are not being included in the warm-weather boost in sales. The reason that the Curbside Gaslamp project ends at F St. is because the public transportation buses use the block to make a right turn. 

The Gaslamp Quarter in downtown San Diego is a lively district packed with restaurants, shops, and entertainment venues. All businesses along the Gaslamp Quarter suffered significant losses due to shutdowns caused by the worldwide COVID-19 pandemic. Struggling business owners on the other side of F St. are disappointed with the approved project because the original proposal included the entire quarter. 

Similarly to Santa Monica, the Curbside Gaslamp project is a decades-old proposal that creates an open-air plaza where businesses can enjoy more outdoor seating. The beautiful area is named after the gas lamps that used to light the area. It’s renovation is certainly a reason to consider investing in Downtown San Diego real-estate.

The original proposal was eight blocks, while the approved project is only five. Those who own businesses in the remaining three blocks are not enjoying the dream that others on fifth are living. Businesses in the area that are included in the Curbside Gaslamp project are seeing profits again, after being allowed to open under specific conditions. Business owners on the other side of F St., however, point out that their restaurants and shops remain relatively empty. 

Reference

San Diego’s City Council recently approved a plan intended to reduce drug use and vandalism within city parks. Home to nearly 400 parks, the city is expanding their use of after-hour curfews at three parks located in Pacific Beach: Fanuel Park, Pacific Beach Library Park, and the Mission Bay Athletic Area, commonly referred to as the Bob McEvoy Fields. If the curfews are approved by council, San Diego will have 16 parks with night time curfews. 

Crime reduction is the sole intention of the council’s plan, which is great news if you’re in the market for downtown San Diego condos. Police argue that curfews are effective in reducing crime because they limit one’s opportunities to commit crimes and it gives police another enforcement tool, allowing them to approach people attending parks at night. The police have the ability to remove people from the park without witnessing a crime. 

Park officials, however, are wary about curfews, because they would like to see the parks open to the public for as many hours of the day as they can be. In low-crime areas, parks are used nearly nightly during the summer for picnics and general get-togethers. While city officials will not be analyzing crime statistics to determine which parks would benefit from enforced curfews, they do plan to allow neighborhoods to independently pursue curfews. 

Another issue is the growing homeless population, who often use the less-crowded parks at night as places to sleep. While the intended goal is to reduce crime in high-crime areas, an unintended consequence is that it redistributes the homeless to low-crime areas where the parks lack curfews. 

Many residents who attended the council meeting voiced satisfaction with the move to implement curfews, citing fear of walking and jogging in their own neighborhood at night as their reasons for support. Parks with curfews will still host pre-approved special events during curfew hours. 

Reference

In the midst of all of downtown San Diego’s remodeling and reconstruction, one project in particular seems to have been forgotten by those in charge. City Council is anticipated to vote on additional funding for the Children’s Park, a poorly planned park conveniently located across the street from the convention center and adjacent to the Children’s museum. 

If the city’s council does not approve additional funding for the park, the entire project may be delayed even longer. A plan was originally approved in 2015 to redo the Children’s Park. However, six years later, the park continues to be an eyesore for residents of downtown. One major problem that the city is running into is that bids to renovate the park exceed $1 million more than was originally budgeted. 

The park has been described as dangerous, dark, unattractive, and dirty by residents. What was once intended as a place for children to get outside and exercise while they play, now serves as a safe haven for crime and the city’s growing homeless population. Though the concept and initial funds to improve the park were improved years ago, failure to act resulted in the previously placed bids becoming outdated. 

San Diego continues growing at a rapid rate, and downtown San Diego real estate would become an even more profitable venture if the city initiated action to revamp and restore the Children’s Park. Furthermore, these efforts wouldn’t only increase the value of property in downtown, it would give children a safe and clean place to play. Utilizing a children’s park to house the homeless is counterintuitive to what the council originally approved.  

The downtown homeless population in San Diego is another issue that the city’s council should consider addressing. Instead of using government-funded parks, intended for children to play, to house the homeless, the council should consider looking at all redevelopment plans and consider where they can address the homeless population. 

Reference

Since the COVID-19 pandemic forced businesses to close their doors and permit employees to work from home, San Diego office vacancies are down to nearly 19%. This is the highest recorded vacancy rate since 1999, and it’s expected to continue to grow through 2021. Despite high office vacancies, developer LeBeau Realty & Associates is currently building a second six-story office building as part of an office complex that already includes a vacant 20-story office building. 

Twenty by Six, the new building being constructed on B Street, will be equipped with balconies, opening windows, and an outdoor courtyard. The building also includes moveable walls that the developers hope will appeal to potential tenants as they try to design what a post-pandemic office may look like. 

The developers had not intended construction during the global pandemic. Similarly to many redevelopment projects, the process of getting approvals and financing the project took nearly a decade as it was debated and considered across a number of finance partners and government agencies. With anticipated completion right around the corner, many wonder if the newly constructed building will be put to use. 

Experts predict, across the board, that working in an office is never going to be the same. The pandemic has proven to some employers that they don’t need office space, and are able to complete their necessary tasks while their employees work from home. Downtown San Diego is experiencing a surge of new residents taking advantage of the downtown San Diego real estate market. With more people working from home, people are deciding to make their homes more enjoyable places to live. Telework isn’t a new concept, but it’s being adopted like one. 

The project’s developers are not concerned. They anticipate higher vacancy rates, but believe wholeheartedly that the work-from-home phenomenon will not last very long. They argue that the new office building should appeal to tech companies because of all the open space with the indoor and outdoor access. However, they explained that offers are already being considered by a law firm, one tech firm, an engineering firm, and a bank interested in moving into the newly erected building. 

Reference

As many are already aware, downtown San Diego is developing at rapid rates, and it remains unclear whether the Port of San Diego is protecting San Diego’s coastal properties while focusing on increased profit. The board is made up of non-elected officials who have complete and total oversight over the region’s waterfront and real estate assets. New developments in the bay area have already attracted nearly 30,000 new residents, so what is the Port doing to protect currently existing residents? 

Twenty years after signing an agreement to build the Navy Pier public park, the Port still has yet to fulfill their promises. There was also another plan that never materialized to connect San Diego and Mission Bays that would create a San Antonio-esque river walk. At one point, there was even a proposal for a gondola between Balboa Park and downtown San Diego, but nothing ever came about. 

Proposals that protect the features of the area held most dearly by San Diego residents’ hearts seem to lose momentum while major redevelopment projects that expand for-profit ventures such as hotels, shops, restaurants, and office space continue their way through completion. 

The cost of downtown San Diego real estate is on the rise as interest in the area continues to grow. San Diego is beginning to transition from a tourist town that attracts visitors because of its location to a residential downtown area where people are migrating to live and work. 

While redevelopment provides a fresh makeover for the downtown area, current residents fear that they aren’t being considered by the Port Authority during their decision-making process. Many who have called downtown San Diego home for their entire lives prefer to see the port preserve what makes San Diego unique. Instead, it’s becoming clear to many that project development will continue with or without residential blessing. 

Reference

Downtown San Diego will be welcoming a new Premier Class A life science building by the end of 2021. The project, which will replace the Thomas Jefferson School of Law, is in response to a growing life science demand in the city. It’s suggested that the demand for life science in the area is due to the anticipated connectivity to the University of California San Diego (UCSD), which is one of the top life science universities in the entire country. 

Managing Director for Barings U.S. Real Estate Equity Joe Gorin explained that the company targets market locations that have both a highly educated workforce and a significant STEM employer presence. As development continues and more STEM employers relocate to the area, experts anticipate many will be attracted to move into the downtown area. 

With the anticipated migration due to the expansion of life science, downtown San Diego condos will be filling up quickly. Life science is an increasingly growing industry in the US, with increased funding from both public and private actors. Gorin notes that on top of the growing life science presence, downtown San Diego is already known for their work-hard play-hard environment. 

The project includes green design elements, smart building systems, and is currently LEED-Gold certified, which is the highest rating from the Leadership in Energy and Developmental Design council. The building is also conducive to the life science conversion because of its large floor plates and its height. 1155 Island Ave. also provides access to the Gaslamp Quarter, granting retail, dining, and entertainment options for its tenants. 

Barings’ real estate investment strategy is likely to attract migration to the area. Due to the focus on life science in the area, tenants are anticipated to also be highly educated with medium-to-high income, which will do wonders for the downtown area. San Diego continues its redevelopment phase, with a number of proposals likely to attract even more attention. 

Reference

If you haven’t been to downtown San Diego in a couple of years, your next visit may feel like you are touring a brand new destination. There are currently 14 active projects going on in the downtown area that will result in 3,301 new apartments, thousands of square feet of retail space, and hundreds of thousands of square feet for office space. 

While many anticipated construction in San Diego’s downtown area to slow due to the ongoing COVID-19 pandemic, projects are continuing as scheduled at an increased rate. This can be explained by a few factors. While it’s not unusual for builders to walk away from projects, it’s not easy to just give up after years of fighting for approvals and getting finances in order. 

A less obvious reason for the pace is that builders are anticipating downtown San Diego real estate to flourish post-pandemic. Most recent construction projects have been residential. However, a reimagining of downtown San Diego includes office spaces that could attract companies to relocate to position themselves in a location with access to a poll of eligible employees. 

Already approved is a three million square-foot project occupying eight city blocks that will erect multiple office towers, including a Navy headquarters, an 1,100-room convention hotel, a museum, and retail space. Real estate analyst Gary London hopes that the development will attract a cluster of biotech companies that would bring workers and businesses to the area. 

While projects that have currently received approval are developing at the speed of light, applications for future projects continue to be received by the city. Six projects pending approval include 385 condos, 1,544 apartments, and an additional 43,000 square-feet of retail. There are also 33 projects that have not begun construction yet, including 705 condos, over 4,500 apartments, 538,000 square-feet of retail space, and 1.2 million square-feet of office space. The next time you visit downtown San Diego, it may be very different than your last visit. 

Reference

That’s right!  The indoor skydiving center in downtown San Diego, 14th & Imperial, opened not to long ago has now been purchased by San Diego for $7 million.  No, San Diego isn’t in the indoor skydiving business but might plan to renovate the building to a “housing navigation center”.

The city received a couple appraisals that estimated the property to be $15-22 million so the purchase of less than half seemed fare.  San Diego downtown real estate has been going up over the past years so getting a property at less than half the appraisal is great!!