The Future of UTC SD Metro | David Marino

ecently I led a presentation Retail/Dining Expansion alongside Jerry Engen, SVP of Development at Westfield Over the next three years, Westfield R UTC will add more than 400,000 square Shopping Centers, discussing the future of ’s University Towne Centre feet of new retail space. The first phase (UTC) neighborhood. Suffice it to say, will include a new flagship , the developments already underway, including a new parking structure, both and those poised to begin, are going to adjacent to Genesee Avenue. The existing absolutely transform this already upscale Nordstrom and parking structure will submarket of San Diego. be demolished to make room for an underground parking structure on the entire northwest portion of the existing Transit Westfield UTC site, where a subsequent The single most significant mass transit phase of 400,000 square feet of high-end connection in the central county fashion retail and upscale dining options is about to make getting around, or getting will be constructed. to work, much easier. The trolley line is For those who drive to the mall, being extended from Old Town to run in addition to over 1,000 new parking David Marino, Executive Vice parallel with the I-5 freeway, looping spaces being added, Westfield UTC’s President, Hughes Marino around the VA hospital and UCSD to renovation will also include a multi-lane valet parking option whereby drivers then run south along Genesee Avenue on new construction, as Class A office space channel into multiple service lanes off La an elevated platform, terminating at the vacancies in UTC have plummeted from Jolla Village Drive and enter the mall up Westfield UTC mall. This new trolley line 22% just three years ago to a mere 7% a grand staircase entry. Situated at the will allow visitors and employees to come today. Things are so tight that a full-floor northwest corner of Genesee and to the UTC area to shop or to their places tenant only has three choices in the entire Village Drive, this ease of parking and of employment, not just at Westfield UTC, UTC market today for class A space. As accessibility to Westfield is bound to draw but at all of the office buildings in the UTC such, The Irvine Company currently has professionals looking for upscale venues submarket. As part of this trolley line a 306,000 square foot, LEED certified, for business lunches and dinners, which extension, Westfield is building a new bus are very limited in the UTC submarket Class A high rise named One La Jolla transit center, adjacent to Genesee Avenue today. Center in progress, which just topped out at Westfield UTC, to provide for even more construction this month, and will be ready inter-connectivity in the UTC area. for tenants to occupy by October 2015. This enormous mass transit Commercial Office Space There are no leases signed in One La Jolla undertaking makes a great deal of sense, As for commercial office space in UTC, Center, as The Irvine Company is building and will take current and future cars off there is speculative building underway, the new high rise for cash and, since they the freeway, considering the planned with potential projects on the horizon don’t have a lender, they don’t have a renovation of Westfield UTC. as well. There is good reason for this requirement for any preleasing. The Irvine

San Diego Orange County Downtown LA Century City www.hughesmarino.com 619.238.2111 949.333.1111 213.689.3211 310.277.3211 Big changes underway in UTC include a re-imagined mall, a long-awaited trolley line and new options for class A office space.

Company is only considering multiple- mall. For 20-30% less cost than tenants to the trolley line extension. floor tenants at this point in time, and is will pay in Class A high rises, free parking If you’re interested in more detailed not rushing into any leasing as they feel is typically included. Likewise, there is information about office space currently they will benefit by waiting for market no shortage of wet lab space available available, and soon to be available in pricing to move upward in the next year. for roughly 20% less cost than lab spaces UTC, please contact me directly at Depending on the leasing success available in Torrey Pines, though it’s worth [email protected]. of One La Jolla Center, Hines is also mentioning that these labs are dated and considering development of La Jolla will need some major rehabbing. Commons III, which would be located at Any way you look at it, UTC is the northeast corner of La Jolla Village about to experience a major injection Drive and Judicial Drive, just one block of sophistication and a further uptick from Westfield UTC. The new tower may in quality. Without revealing too much David Marino is executive vice include a hotel component combined with about Westfield UTC, as such plans have president of Hughes Marino, commercial office space, though decisions yet to get final approval and community a Southern commercial in that regard have yet to be made. Should support, it’s safe to say that it’s going to be real estate company specializing this development proceed, its estimated a spectacular place to spend an afternoon in tenant representation and date of completion will likely extend into or evening. It’s also going to attract building purchases. 2017. businesses and be a wonderful amenity For tenants looking for value, UTC to the commercial office tenants already Contact David toll-free does have an abundance of Class B office in that submarket, and it’s going to be a at 1-844-NO-CONFLICT or space in 2-3 story buildings, sprinkled lot easier to get to, particularly for those [email protected] along Towne Centre Drive and Eastgate coming from the south or the east, thanks to learn more.

San Diego Orange County Downtown LA Century City www.hughesmarino.com 619.238.2111 949.333.3111 213.689.3211 310.277.3211