SAN DIEGO—Financial services, insurance companies, tech and engineering firms and defense contractors make up the fabric of industries in San Diego's Mission Valley submarket, which adds to its stability in the eyes of investors, CBRE EVP Louay Alsadek tells GlobeSt.com. Alsadek and Hunter Rowe recently acted as investment advisors in Omninet Capital's acquisition of Mission Center Office Park in Mission Valley from Kearny Real Estate Co. for an undisclosed price.

The three-building, 183,692-square-foot property, located at 5333-5353 Mission Center Rd., was 92% leased at the time of sale. Richard Gonor, Tony Russell and Brandt Riedman of JLL provided leasing-market expertise.

We spoke with Alsadek about the Mission Valley office market, its potential and the types of tenants attracted to the submarket.

GlobeSt.com: How would you characterize the Mission Valley office market?

Alsadek: We've had very good success in selling assets in that market through the years. What attracts buyers to it is the location and freeway accessibility, all-around, regardless of where you are in the submarket. A lot of buyers are attracted to its access to amenities and public transportation as well. There are a lot of restaurants and other amenities within a walking distance or a short drive.

There's also a lot of mixed-use space in this market, and the City is encouraging higher-density projects that include residential. We're seeing that happen all over Mission Valley in various projects, including, but not limited to Civita, which is just north of us, Riverwalk Golf Club and Town and Country Resort. Also, Trammell Crow Residential bought an office project site west of the 163 and south of Fashion Valley Mall, and will build 284 luxury-apartment units named Alexan Fashion Valley. That's what's attracting buyers.

GlobeSt.com: What do you believe the submarket's potential might be?

Alsadek: We don't currently have a lot of vacant sites for office development. There are just a handful of projects in the pipeline, but it will take time to deliver them. Investors like limited supply over immediate future, and they like the addition of residential more and more. An increasing number of companies want to relocate to Mission Valley or continue to grow there if options available because it's a shorter commute for employees. The biggest trend in the office market is companies want to be located closer to amenities; it makes it easier to hire talent and retain it, and it makes for continued appreciation in values and rents.

GlobeSt.com: What types of companies are drawn to office in this submarket?

Alsadek: It's a broad range: financial services, insurance companies, tech firms, engineering firms and defense contractors because of the proximity to the Port and Bay. The market is not dependent on one field; it's diverse, and buyers like that.

GlobeSt.com: What else should our readers know about the investment climate for office in this submarket?

Alsadek: In Mission Valley and San Diego in general, we are continuing to see consistent activity as far as office investment sales. The number of deals and volume have been in the same range since 2013.

Instant Insights /

Mission Valley Office Users' Diversity Attracts Investors

Related Stories

Recommended For You