September 6, 2025

Surge in San Diego Commercial Real Estate Investments

News Summary

San Diego’s commercial real estate market is experiencing a notable increase in investment activity, despite fluctuating vacancy rates. Recent transactions highlight a vibrant office market with significant sales, including a $92 million office campus sale previously owned by CIM Group. Other notable transactions include a $27 million self-storage facility acquisition and a $15.8 million office property purchase. The market is also seeing financing activity for various developments, indicating ongoing evolution and adaptability in the sector.

San Diego’s commercial real estate sector is witnessing a surge in investment activity despite fluctuating vacancy rates. Key transactions in recent weeks highlight the city’s vibrant office market, with significant sales totaling hundreds of millions.

A highlight of this activity includes the recent sale of a two-building office campus located at 350 Camino De La Reina, previously the home of the San Diego Union-Tribune. This property, featuring 350,000 square feet of space, sold for $92 million and was previously owned by CIM Group. The sale was facilitated by CBRE representatives Matt Carlson and Hunter Rowe, while financing was secured through a team of CBRE professionals, including Scott Peterson, Michael Kolcum, and Colby Matzke. The campus boasts several amenities, including a gym, showers, lockers, pedestrian sky bridges, an on-site café, and a wine bar.

Meanwhile, Intercontinental Real Estate Corp., in collaboration with LaTerra Development, acquired the EZ Access Self-Storage facility in Santa Clarita for $27 million. The facility encompasses 784 units across nine one-story buildings and includes an office and a residential unit. Built in 2000, EZ Access Self Storage has maintained an average customer tenure of six years, signaling its operational stability.

In other office transactions, All for Health, Health for All Inc. purchased a 78,000-square-foot office property at 601-607 Glenoaks Blvd. in Burbank for $15.8 million. This property features a four-story building with 69,000 square feet and a separate single-story structure of 9,000 square feet. Additionally, it comes with a 250-space underground parking structure. CBRE brokers Kyle Barratt, Mark Perry, Edward Matevosian, and Michell Tutor represented the sellers, while LA Premier Group represented the buyer.

Moreover, Marcus & Millichap successfully arranged a $6.2 million sale of a four-tenant retail pad in Signal Hill, concluding the transaction at a 4.8% cap rate. The swift completion of the deal was facilitated within 60 days, with representation by Jonathan Weir and Stefan Ignjatovic.

Adding to the investment activity, KLM Madison LLC acquired the leasehold of Madison Park, which is a 97,000-square-foot mixed-use medical office and neighborhood retail center in Torrance. This center includes a medical office building of 51,000 square feet and two retail buildings totaling 47,000 square feet, boasting an occupancy rate of 87% at the time of sale. Notable tenants include notable health providers and a local restaurant.

In financing updates, BridgeInvest provided a $22.4 million loan to Kahl Investments for the acquisition of the Park Sierra Center, a 150,000-square-foot retail shopping center in Riverside. The property currently has a 66% occupancy rate, along with potential for future development.

Notably, Concord Summit Capital arranged $16.5 million in C-PACE construction financing to develop a new Marriott Tribute Hotel in Santa Barbara. The hotel is set to feature 105 keys and a rooftop amenity, with construction scheduled to commence in September 2025 and anticipating a two-year build time.

The broader context of San Diego’s commercial real estate market indicates an office investment volume of $690 million as of May 2025, placing it eighth among the top 25 U.S. markets. The average sale price per square foot in San Diego stands at $346, noticeably above the national average of $194. However, the city is grappling with an office vacancy rate of 23.1%, which exceeds the national average of 19.4%. Average asking rents in San Diego are reported at $45.17 per square foot, also above the national average.

For future adaptability, San Diego has identified 21 office buildings as potential candidates for residential conversion, comprising a total of 1.8 million square feet. The market for flex office space has also expanded, growing to 2.5 million square feet, demonstrating the ongoing evolution of the San Diego commercial real estate landscape.

Deeper Dive: News & Info About This Topic

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Additional Resources

Author: STAFF HERE SAN DIEGO WRITER

SAN DIEGO STAFF WRITER The SAN DIEGO STAFF WRITER represents the experienced team at HERESanDiego.com, your go-to source for actionable local news and information in San Diego, San Diego County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Comic-Con International, San Diego County Fair, and San Diego Pride Festival. Our coverage extends to key organizations like the San Diego Regional Chamber of Commerce and United Way of San Diego County, plus leading businesses in biotechnology, healthcare, and technology that power the local economy such as Qualcomm, Illumina, and Scripps Health. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECostaMesa.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HEREMissionViejo.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.

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