San Diego Needs More Creative Office Space. Now.

Civic leaders and business organizations have repeatedly stated that one of San Diego’s top economic goals must be to cater to and accomodate the needs of our growing tech sector, especially in downtown. There has been an emergence of this entrepreneurial community and the growth seems to be happening organically, but not without its challenges. One of the big issues facing these creative & tech-based companies is where to house their businesses. Sure, there are some high-rise options, but many of these vertical towers are not very appealing to this cluster of younger, artistic millennials. This explains why all of the funky, “character” buildings are getting swallowed up and the Class B & C towers are still pretty soft.

PannikinBuildingIn many cases, it has become a battle between     restaurants/bars and these creative companies as they are searching for the same type of real estate- character space in activated, walkable areas that allow for an open concept and unique design. Another great option for these tech companies is ground level retail space, however, they face an uphill battle with the PDO. The Downtown Community Plan designates these spaces strictly for retail uses. Since these companies do not fit the criteria, they are forced to obtain a CUP (Conditional Use Permit) to get a variance from the required use. These CUP’s are not only very challenging to get, but expensive too! Scott Lewis, Editor of Voice of San Diego, wrote a great article last year about this topic and more specifically, Underground Elephant’s attempt to locate in the base of the TR Produce Building in the East Village and all the challenges they faced (and are actually still facing).

We all know that the City loves restaurants & bars – they produce massive sales tax revenue to the general fund, but what about the big picture? Civic leaders say that they will actively support this tech sector and the great jobs it produces, but no one seems to be stepping up and assisting them when it comes to their desire to activate ground level commercial space. Furthermore, with the current development boom downtown and dozens of high-rise residential/mixed-use projects being erected, tens of thousands of square feet of (required) retail space is simply sitting vacant. Neighborhoods like East Village and Little Italy would love to see some of this vacant retail space transformed into homes for growing start-ups.

We could definitely trade a couple dry cleaners or coffee shops for a digital media company, software developer or an architecture firm.

For more information about Fabric Investments visit www.fabricinvestments.com.

Brendan Foote is principal of Fabric Investments, a creative development + redevelopment company in San Diego, CA.

1 Comment

  1. Great article! That’s a big reason why we opened a coworking space in Little Italy 😀

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