FIRST OFFICE TO INDUSTRIAL BUILDING CONVERSION IN CENTRAL SAN DIEGO, CA

The new state-of-the-art industrial building is slated to be delivered in May 2019

San Diego, CA – October 2, 2018 – CBRE Group Inc., announced the completion of the demolition of an existing office building, to make way for a new, state-of-the-art industrial building, located in the submarket of Kearny Mesa, in San Diego, CA. 

CBRE’s industrial experts, Bill Dolan and Ryan Sparks represent the landlord, Pacific Southwest Mortgage, Inc., who developed the site in the 1970’s. Pacific Southwest is a privately owned commercial real estate company specializing in apartments, industrial, office and medical offices in the western United States.

The three-story office building, located at 8840 Complex Drive, was recently demolished by the Casper Company. BYCOR General Contractors will commence grading and construction of the new industrial building in October 2018. The new, free-standing, +/-24,188-square-foot building is situated on a 1.54 acre parcel and will feature a secure fenced area. The architect, Ware Malcomb, designed a flexible space that features the ability to provide a mix of office and warehouse (+/-80 percent warehouse and +/-20 percent office space on one floor) or office, warehouse and/or manufacturing space. The building will be completed by May 2019.

“The office market is very competitive in Central San Diego, but we felt long term it was more beneficial for us to create a new industrial building than to upgrade the existing office building,” said John Mulvihill, President and CEO of Pacific Southwest Mortgage, Inc. “There is a strong demand for Class A industrial product and there is a lack of newer, high-quality product for industrial users, especially in Kearny Mesa.”

The building will feature multiple loading options, 24-foot clear height, full drive around access, ESFR Fire Sprinklers, and heavy power for the entire building.

“This is a significant project because it is the first time we have seen an office building be completely demolished and replaced with an industrial building,” said Bill Dolan.

Ryan Sparks adds, “The industrial market is so incredibly tight, especially in Central San Diego. The strong demand from investors and owner/users have pushed values and lease rates to all-time highs. We have already received a significant amount of inquiries and interest from prospective tenants for this new building.”

Located in the central submarket of Kearny Mesa, the project is in proximity to numerous freeway access, restaurants and residential communities. Central San Diego had a strong second quarter with 304,870 square feet of positive net absorption, according to CBRE Research. Year to date leasing activity was 4.6 percent higher year-over-year with 2.7 million sq. ft. of activity so far in 2018.