A commercial office building in the highly sought after Scripps Ranch submarket of San Diego has recently been placed on the market, with an asking price of $30.67 million, or about $151 per square foot. According to the listing by CBRE, the property features 203,229 square feet of newly renovated creative office space.
“This is a really unique freeway fronting office building offering exceptionally high cashflow. The project is located in a booming area with several new life science and tech developments. Additionally, the property is within walking distance to over 1.2 million square feet of retail amenities,” said Matt Pourcho, senior vice president at CBRE.
The property, Scripps Plaza, is located at 10680 Treena Street and was initially developed in 1985. In 2014, public records show that the asset was acquired by Dallas-based investment group Trigate Capital. Since then, the property has undergone $5.5 million worth of renovations.
In total, the recently upgraded two-building office campus includes a secured parking garage and electric vehicle charging stations, large floor plates, and various amenities. Onsite amenities include a gym and a coffee station; however, the property is also near more than 1.2 million square feet of retail amenities.
According to CBRE, the property is 85 percent occupied, with tenants including Motorola, the State of California, Progressive, Aerotek, Allied Universal and several others.
In addition to tenants at Scripps Plaza, Scripps Ranch is home to a number of major tech anf life science companies, including Apple, Google, Amazon, Arrowhead Pharmaceuticals, Northrop Grumman and General Atomics. The area serves as a job hub for the area’s large population. According to CBRE, the immediate five-mile radius surrounding the property is home to approximately 200,000 residents earning an average annual household income of more than $143,000.
The Scripps Ranch submarket continues to see increased interest from life science tenants as well, with two nearby life science properties currently planned for the area. The first, Scripps Ranch Tech Park, is a 1 million square-foot master planned life science and technology campus. Scripps Mesa, located across the street from Scripps Plaza, is a 15.2-acre development space allowing for the construction of 1.32 million square feet of life science space.
With nearby tech and life science companies, San Diego’s office market continues to perform well. Properties continue to be bought up for the conversion to life science space, according to CBRE, which estimates about 10 percent of the market’s office supply is being purchased for conversions.