79.2 F
San Diego
Thursday, Sep 29, 2022

Companies Opt for Downtown San Diego

 New leases have been signed in two prominent downtown office buildings, the newly renovated Paladion at the edge of the Gaslamp District and DiamondView Tower overlooking Petco Park.

Kleinfelder, an engineering, science and construction services firm, has leased 26,944 square feet of space in the Paladion and ClickUp, a software company, has leased two full floors in Diamond View Tower totaling 36,446 square feet.
Kleinfelder also has an office in Kearny Mesa.
Bosa Development earlier this year finished a $30 million redevelopment of the Paladion, a former high-end shopping center at 777 First Ave.
Louis Armstrong, president and CEO of Kleinfelder said the company looked at about 20 locations throughout San Diego County before settling on the Paladion.
“After touring many properties and completing our review, downtown San Diego was determined to be our best option,” Armstrong said.
He said about 140 people will work in the Paladion with about 90 in Kearny Mesa.

  “Through the decision to remain downtown, we confirmed our commitment to our San Diego area staff, our clients, and are eager to continue Kleinfelder’s growth in all phases of our business,” Armstrong said.
Tony Russell of the commercial real estate brokerage JLL said Paladion is drawing interest from prospective tenants because it offers unusually large floor plates for a downtown location and its center atrium gives the building an indoor/outdoor feel.
The Paladion has floor plates of about 45,000 square feet, giving many companies ample room to consolidate their operations on a single floor.
 “Most of the downtown buildings have floor plates of around 20,000 square feet. If you’re over that, you have to go to multiple floors in a building which requires them (workers) to be going up and down stairs or elevators,” Russell said. 

Room to Grow
ClickUp opted to lease space in DiamondView Tower because it “provides a vibrant and fun office environment that can fit our entire team with room to grow and gives us all kinds of unique working spaces,” said Zeb Evans, founder and CEO.
“ClickUp was outgrowing our old office even before the pandemic started, and over the past year we have more than quadrupled in size,” Evans said. “As we get closer to the end of the pandemic-driven lockdowns and start to embrace a hybrid office and remote working style, it became crucial for us to find a new home where we can continue to scale. We’ve all fallen in love with what the city has to offer, especially downtown, and I’m thrilled to further establish our roots in this exciting new office space.”
Developed in 2007 by Cisterra Development, the 15-story DiamondView Tower was acquired by DivcoWest of San Francisco in 2007 for $207 million.

Sara Buss, managing director of DivcoWest, said a big draw for companies such as ClickUp is outdoor terraces and decks.
In CllickUp's case, the company will have access to a 1,875 square-foot terrace overlooking PetCo Park.
"Tenants really want more outdoor space, even in downtown office buildings," Buss said.
As the COVID pandemic eases with vaccinations readily available, Buss said there's been a noticeable uptick in tours of DiamondView Tower by prospective tenants.
ClickUp's lease is "indicative that we're about to turn a corner," Buss said.

- Advertisement -


Featured Articles


Related Articles