Downtown Transforms Through

Downtown Transforms Through ‘Smart Growth’

Revitalized Area Offers Infrastructure, Lifestyle Benefits

BY DEREK DANZIGER AND MARC WOLFSHEIMER



Special to the Business Journal






The face of Downtown San Diego is changing dramatically as more than $2.5 billion worth of new public and private development is expected over the next few years. A new Downtown ballpark, new hotels, an expanded Convention Center, thousands of new homes, modern office towers and retail space, as well as significant public improvements to streets, sidewalks and parks are all transforming Downtown from a quiet urban center, to a thriving, cosmopolitan “24-hour” West Coast city.






Coupled with its transportation network and significant technology-ready infrastructure, Downtown San Diego is a true model for smart growth , a place where people live, work and play. Like a heart, a healthy Downtown is important to the entire San Diego region.






To share the excitement and opportunities available in this revitalized Downtown with companies across the country, a Downtown Business Development and Attraction program is being created. In a collaborative effort, the Centre City Development Corp. (CCDC), Downtown San Diego Partnership, San Diego Regional Economic Development Corp., the city of San Diego and private-sector partners are marketing the favorable business environment, support infrastructure and lifestyle benefits that Downtown offers.






Companies looking to relocate will obtain information about available commercial space, residential opportunities for employees, fiber optic and wireless infrastructure and other incentives that business in today’s marketplace demand.






“Companies are recognizing the many benefits of locating in Downtown San Diego,” said Peter Hall, CCDC President. “The old 9 a.m. -5 p.m. model doesn’t apply anymore. Having an accessible location with a myriad of activities and amenities available around the clock, provides a wonderful built-in retention tool for today’s employers. Walking to work beats spending 45 minutes stuck in bumper-to-bumper traffic.”






- Three Major Projects Bring ‘Third Wave’ Development






No new commercial office high-rise properties have been built in Downtown for more than a decade. Now, there are three major commercial high-rise developments in the pipeline. Considered the “third wave” of Downtown office development, each of these projects offers unique attributes designed to attract tenants seeking everything from low-end, funky loft space to extremely high-end professional office space.






Lankford and Associates plans to break ground this fall on Broadway 655, a 26-story, 475,000 square-foot office tower on the southeast corner of Broadway and Kettner Boulevard. Located directly west of the Koll Center tower, the project will also include 13,000 square feet of restaurant and retail space, 12 residential units and 750 parking spaces. According to Lankford and Associates, the building is more than 50 percent pre-leased.






Construction is scheduled to be completed in fall of 2004.






Catellus Urban Development Group, LLC, has unveiled plans to develop of One Santa Fe Place, a 540,000 square-foot, 27-story Class A office tower at the northeast corner of Broadway and Pacific Highway. The project will feature commanding bay views and architectural design that evokes images of a yacht under full sail.






In the future, its bookend and counterpart, Two Santa Fe Place will rise on the south side of Broadway, creating an incredible welcome and gateway to the center city. In all, Catellus has 3.3 million square feet of fully entitled development rights in place.






It recently sold of two lots north of the proposed office tower to Bosa Development Corporation of Canada , who has just broken ground on the first of two twin 39-story luxury condominium towers. Catellus is actively seeking tenants for its office tower project and will commence once it has secured approximately 50 percent in pre-leasing commitments.






JMI Realty, Inc. plans to develop East Village Square, a mid-rise, mixed-use office, residential and retail development bounded by Seventh and Tenth avenues and J Street. Arrowhead Insurance and Cox Communications have already signed long-term lease for office space, which will sit directly behind the Park at the Park and offer views into the new Padres Ballpark.






Developers agree that the emerging urban lifestyle in Downtown, with its array of arts, cultural, shopping and dining amenities , all within walking distance , will help propel demand for their office projects.






- High-Tech Heart of City






With 71,000 strand-miles of fiber-optic cable beneath the streets and beautiful waterfront and bay views outside, Downtown San Diego was nicknamed “Bandwidth Bay.” Growing up rather than out in a vertical campus is the wave of the future in urban technology development, making it a perfect environment for today’s progressive businesses.






Local media giants have already recognized the advantageous business environment and the high-speed interconnectivity. In the last year, Downtown has welcomed NBC 7/39′s entire studio operations to the 225 Broadway building and KUSI-TV has announced plans to relocate its studios here in 2004.






The Business Development and Attraction Program will, in part, focus on informing businesses outside the region about Downtown’s ability to accommodate their growing and changing needs, including their need for bandwidth. The goal is to lure modern high-tech industries, including communications, biotechnology and software companies, in addition to other businesses that want to leverage today’s technology.






In addition to its attractive waterfront location, typical rental rates for office space are significantly lower in Downtown San Diego than those paid in other major cities and in the suburbs of San Diego. And, Downtown offers flexible office space allowing businesses to customize their needs as they grow.






“Downtown is equipped to handle more than its fair share of projected growth,” said Gina Champion-Cain, chair of the Downtown Partnership. “The Business Attraction Program complements the concept of smart growth and Mayor Murphy’s City of Villages plan. People should live where they work , not commute to the opposite end of the region.”






The Downtown Partnership, CCDC and the members of its collaborative Business Attraction Program are poised to raise the level of awareness of Downtown’s virtues to new heights. As Downtown’s renaissance continues, the heart of the region grows stronger and healthier.






Danziger is director of communications for the Centre City Development Corp. (CCDC), the City’s downtown redevelopment agency. Wolfsheimer is director of communications for the Downtown San Diego Partnership.