Booming Construction in Downtown San Diego
The crane is back. No, not the bird. The construction crane. And there are many of them. It is actually a challenge not to see a construction crane, no matter where you look downtown.
With more than 60 projects under construction, approved for construction, or under review, the skyline will be full of cranes for some time to come. Some $6.4 billion in growth is underway in one form or another. Impressive for any city.
Downtown San Diego is a marketplace where demand outpaces supply. (1) But will all this growth put downward pressure on values? It just doesn’t seem likely.
Bosa’s new 41 story downtown development, Pacific Gate, is now well underway. A spiral shell design that promises to be one of Bosa’s flagship developments, scheduled for completion by next year. Marketing their 217 units with a starting price of over $1,000.00 per square foot (from $1.4 million for a two bedroom) will place an upward pressure on downtown values!
Pre-sales are scheduled to begin in November this year. For further details please contact Claudette Cooper at (619) 825-1974
Zephyr, another San Diego developer of high end housing has their latest development on the west side of Balboa Park. This 60 unit development will range from $1.5 million for a two bedroom to $6 million for penthouses.
Such prices make other units selling at $500 or even $600 a square foot a veritable bargain. Those units with magnificent views at under a $1,000 a square foot may soon be considered something akin to plunder!
Downtown San Diego has seen unprecedented population growth. Jumping more than 75% since 2000 and still growing. “So many conveniences within practical walking distances coupled with uniquely great weather and a world class water front, makes growth an inevitability,” states Real Estate Broker Claudette Cooper. “San Diego has its own Symphony, Ballet company, even Opera. Numerous great theatres, museums, an enormous variety of restaurants, cafes, bars, night clubs, all within four square miles. What more could anyone want?”
Urban revitalization is a national trend and San Diego is certainly a leader. Public transportation here has expanded and there are numerous plans in the works for even further expansion. The trend is to move away from long commutes and the higher maintenance costs of suburban living and enjoy the many conveniences of city life.
Where are we headed? Kris Michell, CEO of Downtown San Diego Partnership was recently quoted in the Wall Street Journal, “Over the next 30 years, the city’s population is forecast to grow by an additional I million residents.”
Further proof of this solid market is found with the California State Board of Equalization. “Property values rose by 5.9% from 2014-2015. This is the fifth consecutive year the total value of …properties has increased.”
1* “San Diego falls into a short list of markets where I would say demonstrably already that demand outpaces supply,” Jonathan Smoke said just over a year ago. “That very tight supply condition puts it in a market that has next to zero chance of seeing prices decline.” http://www.sandiegouniontribune.com/news/2014/dec/04/