Why Office Investment Is ‘Tough’ In San Diego

Jonathan Barach

Office investment in San Diego is challening for investors—because there are so few opportunities. Vista Investment Group recently completed its second purchase in the market in the last 12 months, and says that when they can find opportunities in the market, they move quickly. However, it is rare that acquisition opportunities come to market in San Diego, because most owners are not looking to sell. The firm’s latest purchase was the 140,107-square-foot Seville Plaza in Kearny Mesa, and in September of 2017, it purchased Plaza 2020, a 105,796-square-foot class-A office building in Mission Valley.

“We like San Diego because it is a global city and it is a young, well-educated town. There are great universities, a big clean-tech and biotech infrastructure and a great quality of life,” Jonathan Barach, president and co-founder of Vista Investment Group, tells GlobeSt.com. “However, San Diego is a tougher nut to crack because it is more insulated with less deal volume than some of the other major markets on the West Coast, like Los Angeles, Seattle or the Bay area. We like San Diego, but it is harder to uncover opportunities and there are higher barriers to entry. When we do see a good opportunity, like Seville, we jump on it.”