San Diego Flex Office Asset Trades for $50M
IDEC Corp. has purchased Studio 2200, a 233,194-square-foot flex office asset in Carlsbad, Calif., from Hill Cos. for $49.5 million.
Cushman & Wakefield represented both parties. In addition, a CBRE team negotiated on behalf of the buyer.
Japan-based IDEC—which operates within the robotics and semiconductor industries, among others—will relocate its U.S. headquarters from a 83,600-square-foot property in Silicon Valley’s Sunnyvale, Calif. The new owner plans to occupy a large portion of Studio 2200 and continue leasing the remaining space to the facility’s existing tenants.
The current roster includes cloud infrastructure operator Arlo and Rubio’s Restaurant Group, the property serving as head office for both companies, according to CommercialEdge data. The duo occupies 63,650 square feet combined.
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Completed in 1990, Studio 2200 underwent renovations in 2007 and 2014. The facility can accommodate various uses including office, R&D and industrial. Moreover, the property has planned unit development rights to construct new product on the current parking lot.
The two-story building features 15-foot, 6-inch and 17-foot, 5-inch ceiling heights, but also a freight elevator, one loading dock—expandable to seven—and one grade loading position. Amenities include a gym, lounge areas and EV charging.
Located at 2200 Faraday Ave., the facility is the largest single asset at Carlsbad Research Center, a 560-acre high-tech park. The McClellan-Palomar Airport is some 2 miles away, while the Port of San Diego is roughly 32 miles southeast.
Cushman & Wakefield Executive Vice Chairman Aric Starck together with Senior Associate Drew Dodds represented the seller, while Executive Director Peter Curry negotiated on behalf of the buyer. CBRE Senior Vice President Dennis Visser and Vice President Weston Yahn also advised IDEC on the purchase.
San Diego office sales rebound
Year-to-date through September, 2.4 million square feet of office space traded in greater San Diego, marking an 82.7 percent spike year-over-year, according to a report by Kidder Mathews. What’s more, the third quarter figure clocked in at 1.1 million square feet—the first time it surpassed the 1 million mark since September 2022.
Meanwhile, office cap rates have been steadily climbing since 2022, nearly reaching 8 percent as of September, the report shows. Just two years ago, the cap rates hovered below the 6 percent point.
The metro’s office leasing activity totaled 3.5 million square feet during the first nine months of the year, down 31 percent year-over-year, Kidder Mathews shows. The tepid activity led to a 90-basis-point increase in vacancy year-over-year. The index reached 13 percent in September.
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