Mission Valley is about to undergo a surge in office redevelopment.
Most recent was the $6 million renovation of a 46-year-old former Valley Corporate Center by The Casey Brown Co.
That comes just after the same company this past summer finished the $40 million transformation of the former San Diego Union-Tribune newspaper campus into 340,000 square feet of top-grade office space, renamed Amerpersand.
With 90,000 square feet of Ampersand leased to Encore Capital Group, The Casey Brown Co. this month brought to market the renovated Valley Corporate Center at 591 Camino de la Reina with a new name — Tower 591.
Commercial real estate brokers who work Mission Valley said demand is so high that Ampersand and Tower 591 should have little difficulty attracting tenants.
“Taking a step back, if you kind of look at what’s driving some of the excitement around the county, the urbanization of some of these submarkets is really driving it,” said Matt Carlson, a senior vice president of CBRE.
UTC has gotten a lot of the attention of late, but Mission Valley is the submarket that already has some of what’s coming to UTC, Carlson said.
“The trolley’s already there, there’s a ton of density there, there’s a ton of retail there,” Carlson said. “The office product is starting to meet the demand of what’s already been there from a retail and a residential potential.”
Other Mission Valley building owners are likely to follow The Casey Brown Co. in repositioning older buildings to meet the demands of tenants looking for creative office space, according to Carlson and other brokers.
“You’re seeing investment from office building owners because they see this urbanization in Mission Valley, they see the density, they see the walkability, they really think that’s going to grow,” Carlson said.
Tower 591 is a case in point.
The Casey Brown Co. acquired Tower 591 in January 2017.
“It was very, very tired, in need of some TLC,” said Brandt Riedman of JLL, who is leading leasing of the building with Richard Gonor and Tony Russell of JLL.
“This building has one of the best locations within Mission Valley,” Riedman said. “We sit right at the corner of the (Interstate) 8 and the (Interstate) 5. It has easy ingress and egress. We’ve got great views, even ocean views from the top floors.”
As part of the renovation, the front entrance was redone with architectural features to make it more prominent, the lobby, restrooms and building corridors were remodeled, an open café area was added on the first floor, an existing gym was upgraded, and landscaping was added to the exterior.