Sempra Energy has decided to relocate their downtown office to 8th and Island. Sempra Energy is “an American natural gas utilities holding company” that will build a state-of-the-art 16 story highrise with 320,000 square feet of office space. Construction is well on its way and is adjacent to the fire station that’s bound by 7th-8th and Island-J St. The land is owned by Cisterra Development, who was originally going to build Cosmopolitan Square, but plans changed (I’m assuming) when the market and they decided to lease out the land. Sempra signed a 25 year lease and it’s been reported that it will cost around $120 million to build the new office.
I think having a Fortune 500 company (ranked #281 in 2013) in the East Village is a huge benefit to residents. I’ve been saying this for years, but the main reason why property values are so low (compared to San Francisco, Seattle, Los Angeles, Vancouver, etc) is because we lack the commercial presence that other cities have. Once Sempra relocates, I assume another large company, or multiple companies will fill their space which will add to the demand for downtown living (which will cause housing prices to rise…in theory).
Residents on the west side of Parkloft will lose most of their views/natural light to the west and south/southwest facing units at The Mark will also have some of their views impacted. I don’t think either building will really go down in value though, since the benefits of the building/company will outweigh the negatives.
It’s exciting to see downtown continue to grow and be a part of it. In the next few years, we’ll have several new apartment buildings, some new commercial space, new bars/restaurants, the CAC Park and hopefully some new condos as well. The new Sempra Energy building is scheduled to be completed in the summer of 2015. You can read more about the project here.
If you have any questions about San Diego real estate, please contact Denny Oh at 858-243-2092 or [email protected] Thanks.