Who's Looking to Lease in National City?

Alsadek: “San Diego has many small submarkets such as National City, Point Loma and Governor Park, and all investors looking at deals in those smaller submarkets focus on the bigger regional picture.”

NATIONAL CITY, CA—The National City area has seen tremendous interest from hospitality, retail and lifestyle tenants, with prominent new construction planned along the Chula Vista Bayfront continuing to broaden the region’s appeal to a more diverse tenant base, CBRE EVP Louay Alsadek tells GlobeSt.com. As we recently reported , Alsadek and advisor Hunter Rowe recently represented a joint venture between Walton Street Capital and Greenlaw Partners in the sale of South Bay Corporate Center at 401 Mile of Cars Way here to Bosa Development for $42.8 million. The 189,588-square-foot office building was 100% leased at the time of sale and features a diverse tenant roster including the County of San Diego , ITT Technical Institute, TDK , and Episcopal Community Services . We spoke exclusively with Alsadek about the property, the office-investment market in National City and the tenants who are drawn to this submarket. GlobeSt.com: What stands out for you about South Bay Corporate Center? Alsadek: South Bay Corporate Center was a unique offering in a burgeoning submarket with few office-investment options. The property is 100% leased to credit tenants with stable cash flow and excellent access to nearby amenities, the freeways, and public transportation. GlobeSt.com: How would you characterize the office investment market in National City? Alsadek: San Diego has many small submarkets such as National City, Point Loma and Governor Park, and all investors looking at deals in those smaller submarkets focus on the bigger regional picture. The San Diego office-investment market has been very active and is on track to match or exceed last year’s volume, with more than $900 million in institutional investment sales year-to-date. GlobeSt.com: What types of tenants are interested in this market? Alsadek: San Diego South County’s GDP increased 37.6% from 2010 to 2013, with personal income increasing 69.4% and employment growing by 29.2% over the same period. As a result of this growth, the area has seen tremendous interest from the hospitality, retail and lifestyle industries. with prominent new construction planned including the Chula Vista Bayfront, which will continue to broaden the region’s appeal to a more diverse tenant base. GlobeSt.com: What else should our readers know about National City’s office market? Alsadek: As a smaller piece of the San Diego office market, National City and neighboring submarkets like Chula Vista are ideally positioned to grow and benefit from the significant projected development the Port Authority and City of Chula Vista are planning for the Bayfront. South Bay Corporate Center is located within minutes of Downtown San Diego, as well as the planned marina and resort developments along the bay, which will enhance the long-term growth of the project’s value and position in the region.