San Diego Commercial Real Estate Report — April 2026

This is the San Diego County Commercial Real Estate Market Report for April 2026.

Over the next several minutes, you will hear a complete and data-driven breakdown of every major transaction, sector trend, capital flow, and strategic signal that defined San Diego County’s commercial real estate landscape last month.

This report is written for decision-makers — executives, institutional investors, and senior brokers who need the full picture, not the headlines.

The data in this report is sourced from CBRE, Connect Commercial Real Estate, Commercial Property Executive, Kidder Mathews, Berkadia, Northmarq, Marcus and Millichap, Colliers, Cushman and Wakefield, and the Jones Lang LaSalle research teams.

Let us get into it.

The Big Picture — Where San Diego Stands Right Now

San Diego County entered April 2026 as one of the most closely watched commercial real estate markets in the western United States. The county sits at a genuine inflection point. Certain sectors — particularly industrial — are absorbing the hangover of a historic supply cycle, while others — specifically medical office, luxury multifamily, and specialty lab space — are drawing fresh institutional capital at a pace that signals real conviction.

The countywide commercial sale price average sits at 652 dollars per square foot, with market-wide capitalization rates hovering near 5.12 percent. Those numbers reflect a premium market that has not cratered despite elevated interest rates and softening demand in key sectors. What they also reflect is a market that is bifurcating — separating high-quality, well-tenanted, well-located assets from everything else.

The month of April 2026 produced no fewer than eight significant commercial real estate transactions across the industrial, office, medical, life sciences, mixed-use, and multifamily sectors. Taken together, they tell a clear story about where capital is going, what buyers believe, and what the next cycle may look like in Southern California’s second-largest commercial real estate market.

Industrial Sector — Softening Demand, Selective Conviction

The industrial sector is San Diego County’s largest and most closely tracked commercial real estate sector, and in the first quarter of 2026, it delivered a sobering set of numbers that executives need to understand clearly.

According to CBRE’s San Diego Industrial Figures report released on April 13th, 2026, net absorption fell to negative 554,857 square feet in the first quarter — a staggering reversal of approximately 1.2 million square feet compared to the positive 645,773 square feet recorded in the first quarter of 2025. It was also a significant decline from the 106,003 square feet of positive absorption logged in the fourth quarter of 2025, meaning momentum had already been fading before this report was published.

Vacancy rose to 6.7 percent — up 20 basis points quarter over quarter and 50 basis points year over year. Availability climbed to 9.7 percent, which is 40 basis points higher than the prior quarter and 90 basis points higher than one year ago. Average asking rents declined 1.9 percent quarter over quarter and 4.6 percent year over year to 1.41 dollars per square foot on a triple-net basis.

On the construction side, space under construction rose 8.4 percent from the fourth quarter of 2025 to 946,266 square feet, but that figure is down 42 percent from the 1.6 million square feet under construction one year ago. The number of active construction projects dropped dramatically — from 44 projects one year ago to just 11 today.

Deliveries of 125,076 square feet more than doubled the prior quarter’s completions but remained 52.1 percent lower than the first quarter of 2025. The market is working through existing space, and developers have pulled back meaningfully.

Despite this broader softening, individual high-quality industrial assets continued to attract serious institutional buyers in April 2026.

On April 2nd, Realty Income Corporation — one of the largest net lease real estate investment trusts in the United States — acquired a 133,844-square-foot light industrial and manufacturing facility at 13100 Danielson Street in Poway for 43.3 million dollars, or approximately 323 dollars per square foot. CBRE’s Hunter Rowe, Brian Russell, Michael Longo, and Matt Carlson arranged the sale on behalf of an undisclosed seller.

The property sits on 7.2 acres along the Interstate 15 corridor, is fully leased to an established manufacturer specializing in corrugated boxes and packaging solutions, and features nine dock-high doors, eleven grade-level doors, a secure truck court, and a dedicated loading area. Hunter Rowe stated that the Poway submarket “remains one of San Diego’s tightest industrial pockets, with strong market fundamentals and tenant demand”.

One day later, on April 3rd, RAF Pacifica Group — known in the industry as RPG — completed the sale of a 59,828-square-foot industrial building at 3280 Corporate View in Vista, fully leased to electric vehicle manufacturer Rivian Automotive. RPG had partnered with CenterSquare Investment Management on the asset, and Cushman and Wakefield represented the sellers.

While the sale price was not publicly disclosed, the Rivian tenancy represents one of the most high-profile industrial leases in North San Diego County, and Adam Robinson, founder and president of RPG, confirmed that “continued investor and occupier interest in well-located industrial assets in North San Diego County underscores the strength of the region’s fundamentals”.

On April 24th, a notable life sciences and advanced manufacturing leasing transaction was announced at Mesa Labworks in San Diego’s Sorrento Mesa submarket. King Street Properties signed Interfacial Consultants LLC — a subsidiary of Nagase and Company, a Japanese-headquartered global leader in advanced materials and manufacturing process technology — for an 8,775-square-foot turnkey lab suite. This marks Interfacial’s first California presence.

Cushman and Wakefield represented King Street, while Jones Lang LaSalle’s Greg Bisconti and Justin Venckus represented the tenant. Adrienne Davenport, vice president of research and development at Interfacial, confirmed the company was attracted by the turnkey nature of the space, stating they were excited to “have a lab that is ready built to begin operations on day one”.

Office Sector — Del Mar Leads While the Broader Market Recalibrates

The office sector in San Diego County remains one of the most complex and nuanced stories in Southern California commercial real estate. Countywide vacancy is elevated, and average asking rents have declined 1.4 percent year over year to 3.39 dollars per square foot monthly on a full-service basis. However, within that broad softness, premium submarkets are performing with a different set of rules entirely.

The single most important office transaction of the month closed on April 1st, 2026, when Bridgeway Real Estate Partners, in partnership with LBX Investments, acquired Plaza Del Mar — a 120,000-square-foot office campus located at 12520 and 12526 High Bluff Drive in the Del Mar Heights submarket — for 43 million dollars. That translates to approximately 358 dollars per square foot for a coastal office asset.

CBRE’s Scott Peterson, Mark McGovern, Colby Matzke, and Michael Kolcum arranged the acquisition financing. CBRE’s Mike Hoeck, Chris Pascale, and Ellycia Walker will handle leasing for the new ownership.

Walker stated that “Del Mar Heights continues to stand out as the most vibrant office submarket in San Diego, with strong leasing activity and rent performance that reflects its appeal,” adding that “Plaza Del Mar is poised to perform well as it delivers that rare balance of premium space with the coastal lifestyle many tenants gravitate towards”.

This transaction is significant not just for its price but for what it signals. Sophisticated, well-capitalized investors are still committing to San Diego office — but only at the top of the market. Del Mar Heights has seen significant rent increases in recent years, according to CBRE research, separating itself from the broader countywide narrative of softening office fundamentals.

The only major office project currently under construction countywide is the Campus at Horton, which will deliver 243,000 square feet in 2026, while an additional 14.4 million square feet remains in the proposed pipeline.

Technology tenants led leasing activity in the prior year, accounting for 52 percent of new leasing volume, followed by legal services and professional and business services — a sign that the strongest demand for San Diego office space is coming from high-wage, knowledge-economy sectors rather than traditional corporate users.

Medical Office and Healthcare Sector — Conversion Capital Moves In

The medical office sector produced one of the most strategically interesting transactions of the entire month. On April 27th, Compass Capital Investments acquired RB Medical Plaza — a two-building, 75,598-square-foot office and medical asset in the Rancho Bernardo submarket — for 18,250,000 dollars, or 241 dollars per square foot. The seller was Bernardo Court MOB LLC, represented by CBRE’s Matt Pourcho, Anthony DeLorenzo, and Chris Bodnar.

The Compass Capital strategy here is worth examining carefully. Rather than a traditional lease-up play, the firm intends to convert the property into 39 individual office and medical condo units and execute a phased sellout over a projected four-year hold period. Colliers’ Ryan Foley and Myles Martinez have been retained to market the condo units, and Patrick O’Donnell of Colliers’ Debt and Structured Finance team arranged the acquisition debt.

Brett Visintainer, principal of Compass Capital Investments, said the deal “reflects our continued focus on identifying high-quality assets with strong repositioning potential in resilient markets,” noting that “San Diego’s medical and professional office demand, combined with the flexibility of a condo sell-off strategy, creates a compelling opportunity for both investors and owner-users”.

This is a playbook that more investors should pay attention to. As traditional office leasing demand softens and owner-user demand from medical practitioners and small professional firms remains durable, the condo conversion model offers a path to liquidity that bypasses the leasing market entirely.

Multifamily Sector — Institutional Capital Doubles Down

San Diego’s multifamily market attracted two notable capital events in April 2026, both reflecting deep institutional confidence in the county’s rental housing fundamentals.

On April 17th, Berkadia’s La Jolla office closed the sale of Metro Mission Valley — a 305-unit, core-plus luxury apartment community located at 5080 Camino del Arroyo in San Diego’s Mission Valley submarket — to GID, a Boston-based real estate investment and development firm with more than 60 billion dollars in assets under management.

Managing directors Ed Rosen, John Chu, and Tyler Sinks of Berkadia La Jolla led the transaction on behalf of the seller. The purchase price was not publicly disclosed, but context matters here: GID paid 167 million dollars for a 331-unit San Diego apartment community in the summer of 2024, implying a comparable per-unit pricing framework for this acquisition.

Built in 2018, Metro Mission Valley contains a mix of studio, one-bedroom, and two-bedroom units, positioned near more than 2.8 million square feet of retail at Westfield Mission Valley and Fashion Valley Mall, with freeway access connecting to over 450,000 jobs countywide.

Ed Rosen described it as “a rare opportunity for investors to acquire an exceptionally well-performing asset in the heart of San Diego,” noting strong demand for “truly contemporary Class A rental product” driven by millennial-focused housing preferences.

Earlier in the month, on April 6th, Northmarq’s San Diego Debt and Equity team — led by Aaron Beck and Conor Freeman — arranged a 26.75-million-dollar bridge loan for 8th and U Apartments, a newly delivered 90-unit mid-rise multifamily community in San Diego’s Hillcrest neighborhood.

The loan was structured on behalf of Greenline Development Group through a correspondent relationship with National Life Group, structured as a three-year, interest-only term with extension options. The property, completed in 2025, includes 35 studios, 43 one-bedroom units, 12 two-bedroom units, and 11 deed-restricted affordable units. Gilad Tamir, managing partner of Greenline, described the project as bringing “a bit of New York style with high-end finishes, thoughtful layouts, and urban walkable lifestyle” while “maintaining the character of Hillcrest”.

Mixed-Use and Retail Sector — Value-Add Momentum

On April 28th, Marcus and Millichap finalized the sale of La Mesa Mixed-Use — a 12,196-square-foot mixed-use property located at 6760 University Avenue near San Diego State University — for 2,300,000 dollars.

The property contains 13 suites with a combination of office and retail uses, supported by ample parking, dual access points, and high-visibility frontage on a dense infill corridor. Built in 1976 with no major renovations, the asset had been held by the same private investor for several decades and carried years of below-market rents and short-term leases.

Ross Sanchez, director of investments in Marcus and Millichap’s San Diego Del Mar office, who marketed the property alongside Nick Totah, managing director of investments, said the seller “saw an opportune moment to unlock the equity they had built,” and that “years of below-market rents and short-term leases created a compelling value-add story that attracted multiple offers”.

Both buyer and seller were private investors. This transaction is representative of a broader trend in San Diego County’s retail and mixed-use corridors — long-held family assets being released into a market hungry for repositioning opportunities near university neighborhoods and high-traffic corridors.

What the Data Suggests — An Executive-Level Interpretation

Here is the core takeaway for every executive reading this report. Do not let the headline industrial softening numbers distract from the more important signal underneath them.

When CBRE reports negative 554,857 square feet of net absorption and a 4.6 percent year-over-year rent decline in industrial, that is a real correction that deserves serious attention. But within that same month, Realty Income Corporation paid 43.3 million dollars for a single fully leased industrial asset in Poway, and RAF Pacifica Group completed the off-market sale of a Rivian-tenanted industrial building in Vista.

Institutional buyers are not leaving the San Diego industrial market — they are becoming more selective about what they will pay for.

That is not a retreat. That is a flight to quality.

The Del Mar Heights office transaction at 43 million dollars reinforces the same thesis across a different sector.

The countywide office vacancy rate may be elevated, but the market’s strongest submarket is still attracting sophisticated buyers willing to underwrite a long-term hold and reposition with premium leasing teams.

The message is that geography still matters enormously in San Diego County, and blanket narratives about sector-wide distress obscure where real opportunity lives.

The medical office condo conversion at Rancho Bernardo is perhaps the most forward-looking signal of the month. It tells us that a new class of investors has identified a structural opportunity: healthcare practitioners and small professional firms want to own their space rather than lease it, and they will pay a premium for that certainty. As traditional office landlords struggle with vacancy, conversion-to-condo plays offer a viable exit strategy that sidesteps the leasing market entirely. Expect to see more of this.

The multifamily sector’s resilience is the clearest and most consistent data point across the entire report. GID’s second acquisition in two years in the Mission Valley submarket, Northmarq’s successful placement of a 26.75-million-dollar bridge loan for a brand-new Hillcrest development, and persistent rent growth in the luxury Class A segment all confirm that San Diego’s long-term housing fundamentals — driven by constrained supply, a deep employment base anchored in defense, technology, and life sciences, and a desirable coastal climate — continue to support institutional multifamily investment.

Finally, the King Street and Interfacial Consultants lease at Mesa Labworks is a quiet but meaningful signal for San Diego’s life sciences and advanced manufacturing ecosystem. Global companies — including Japanese conglomerates with deep roots in pharmaceuticals, enzyme technology, and advanced materials — are choosing San Diego as their first California market for good reasons: talent, infrastructure, and a turnkey lab product that allows them to begin operations immediately.

That is exactly the kind of tenant demand that sustains long-term rent growth in specialized product types.

The data, taken as a whole, suggests the following: San Diego County’s commercial real estate market is not in distress. It is in repricing.

The investors who understand the difference — and who use this correction to acquire mission-critical assets at disciplined prices — will be the ones who define the next cycle’s winners.

Closing

April 2026 was a month that rewarded precision over pessimism in San Diego County. The data showed real softness in industrial fundamentals, persistent vacancy in the broader office market, and a life sciences sector still searching for equilibrium.

And yet, across every sector, disciplined capital found a home.

Institutional buyers paid for quality. Operators executed creative repositioning strategies. Lenders deployed capital into well-structured deals.

San Diego County remains one of the most fundamentally sound commercial real estate markets in the American West, and the transactions of April 2026 make that case clearly.

This has been the San Diego County Commercial Real Estate Market Report for April 2026. Thank you for listening.

References

• Connect Commercial Real Estate — Realty Income Acquires Mission-Critical Poway Industrial: https://www.connectcre.com/stories/realty-income-acquires-mission-critical-poway-industrial/

• Connect Commercial Real Estate — RPG Sells Rivian-Leased Industrial in Vista: https://www.connectcre.com/stories/rpg-sells-rivian-leased-industrial-in-vista/

• Connect Commercial Real Estate — Partnership Acquires Del Mar Heights Offices for 43 Million Dollars: https://www.connectcre.com/stories/partnership-acquires-del-mar-heights-offices-for-43m/

• Connect Commercial Real Estate — San Diego Medical Office Building Set for Conversion to Office and Medical Condos: https://www.connectcre.com/stories/san-diego-mob-set-for-conversion-to-office-medical-condos/

• Connect Commercial Real Estate — GID Acquires Luxury Multifamily in San Diego’s Mission Valley: https://www.connectcre.com/stories/gid-acquires-luxury-apartments-in-san-diegos-mission-valley/

• Connect Commercial Real Estate — Northmarq Arranges Bridge Loan for Newly Developed Hillcrest Apartments: https://www.connectcre.com/stories/northmarq-arranges-bridge-loan-for-newly-developed-hillcrest-apartments/

• Connect Commercial Real Estate — King Street Signs Advanced Materials Maker at Mesa Labworks: https://www.connectcre.com/stories/king-street-signs-advanced-materials-maker-at-mesa-labworks/

• Connect Commercial Real Estate — Private Investor Divests San Diego Mixed-Use After Decades of Ownership: https://www.connectcre.com/stories/private-investor-divests-san-diego-mixed-use-after-decades-of-ownership/

• CBRE — San Diego Industrial Figures, First Quarter 2026: https://www.cbre.com/insights/figures/san-diego-industrial-figures-q1-2026

• Commercial Property Executive — San Diego Sees Strong Office Development, Steady Sales: https://www.commercialsearch.com/news/san-diego-office-market-update/

• Los Angeles Times Business to Business — Fourth Quarter 2025 Southern California Commercial Real Estate Market Report: https://www.latimes.com/b2b/commercial-real-estate/story/socal-cre-market-report-q4-2025

• LoopNet — San Diego Commercial Real Estate Market Trends and Data: https://www.loopnet.com/search/location/san-diego-ca/