Where the Breweries Are in San Diego

Medley poses with Black Plague’s mascot at another Hops Highway brewery, Bear Roots Brewing.

OCEANSIDE, CA—San Diego’s “ Hops Highway ” along Highway 78 is home to nearly 60 craft-brewery facilities and well over 20 craft spirits- and wine-related establishments excluding liquor stores. Lee & Associates ‘ broker Monique Medley recently represented Black Plague Brewing here in a lease in which the brewery will occupy a 12,945-square-foot, free-standing building located at 2550 Jason Ct. within the Jason Court Business Park . The city currently has eight breweries in operation. Medley gave GlobeSt.com an exclusive look at how the craft-brewery trend has grown in San Diego and how this plays out in CRE. GlobeSt.com: How did the craft-beer trend come about in San Diego? Medley: The craft-beer and craft-beverage scenes have been progressively infiltrating the fiber of San Diego County so steadily that those with even a slight interest in this thriving industry know that we are at the forefront of innovation, growth and worldwide recognition for our fine craft beers. This robust trade is positively affecting not only our employment numbers and economic reach, but also the amount of commercial real estate space the industry is occupying. San Diego’s modern craft-beer scene was launched in 1989 and then exploded after the economy’s recovery in 2010. Prior to 2010, San Diego had 37 craft breweries in operation. In only six years, that number has increased exponentially to approximately 130, a number that will continue to rise.

Black Plague Brewing will occupy space in an industrial building at 2550 Jason Ct. here.

GlobeSt.com: How is this trend impacting commercial real estate in the county? Medley: In line with this growth, we are experiencing noteworthy impacts on brick-and-mortar occupancies countywide. San Diego County’s brew facilities occupy well over 1.5 million square feet, ranging in size from approximately 800 square feet at Jamul Brewing Co. to more than 250,000 square feet of combined space at Stone Brewing ‘s multiple brew gardens, tasting rooms, distribution and storage locations. The majority of the real estate is occupied within various industrial warehouses sprinkled throughout the county; however, because of the rising popularity of neighborhood tasting digs and brew pubs, this figure also includes numerous retail spaces. GlobeSt.com: Tell us more about what’s been happening in North County with this trend. Medley: San Diego’s northern region, affectionately known as “Hops Highway” (Highway 78), is home to nearly 60 craft brewery facilities and well over 20 craft-spirits and wine-related establishments (excluding liquor stores). There is approximately 54.5 million total square feet of industrial and flex commercial real estate space in the Hops Highway region. Hops Highway craft breweries, in their varying forms, occupy approximately 670,000 total square feet, while craft spirits and wine occupy approximately 40,000 total square feet. Although our various artisanal batches are creating a marked niche in San Diego County as a whole, Hops Highway accounts for nearly half of countywide breweries and nearly half of the total countywide brick and mortar occupied by these craft industries. GlobeSt.com: What else should our readers know about the craft-brewing trend in the county? Medley: San Diego “hoppily” provides a multitude of varied locations and tasting opportunities for our innovative and thirsty city. The county’s growing craft-beverage scene has created a rapidly rising demand for commercial space with few signs of slowing. The only question that remains is how large the industry will grow in San Diego County’s coming years.                                                                                                                        

Total # of operational breweries in SD County	128
Total Hops Highway breweries	57
Total San Diego brewery space occupied	approx. 1.5 million square feet
Total Hops Highway commercial (flex and industrial)	approx. 54.5 million square feet
Total Hops Highway craft breweries	approx.  670,000 square feet
Total Hops Highway craft spirits/beverages	approx.  40,000 square feet
Total Hops Highway square footage	approx. 45% of the county’s total brewery square footage