- Billionaire investor Donald Bren’s Irvine Co. has exited downtown San Diego, selling its six-building portfolio, including the city’s tallest tower, at steep discounts.
- The move signals long-term concerns over the district’s recovery prospects, with downtown office vacancies now exceeding 35%.
- Irvine Co. is shifting focus to stronger San Diego submarkets like La Jolla and UTC, mirroring a broader trend of capital moving away from struggling downtown cores.
A Market-Shaking Exit
Donald Bren, Irvine Co. chairman and top real estate investor, has officially exited downtown San Diego’s office market, reports WSJ. His firm, which once held the largest office footprint in the city’s core, began selling off its holdings in 2024. This fall, it completed the exit with the sale of One America Plaza—San Diego’s tallest office tower—at a price more than 50% below what Irvine originally paid.
The move shocked the market, with experts calling it a clear vote of no-confidence in downtown San Diego’s future.
From Market Leader To Seller
Irvine Co. began acquiring San Diego office assets in 2003, betting on the city’s growing economy and diversifying business base. But post-pandemic conditions—especially the shift to remote work—have left many West Coast downtowns, including San Diego’s, with stubbornly high vacancy rates.
Downtown San Diego’s office vacancy reached 35.6% in Q3 2025. That’s more than double the rate in nearby higher-growth markets like La Jolla and University Town Center (UTC). Irvine is now focusing its investments in those areas.
Get Smarter about what matters in CRE
Stay ahead of trends in commercial real estate with CRE Daily – the free newsletter delivering everything you need to start your day in just 5-minutes
A Telling Signal
Institutional investors like Irvine Co. often provide market stability, even during downturns. Their withdrawal from a market can unsettle tenants, deter lenders, and depress values further. According to industry analysts, Bren’s strategic exit is a sign that he anticipates San Diego’s downtown recovery may take far longer—or may never fully materialize in its previous form.
“This isn’t just a cycle,” said Norman Miller, professor emeritus at the University of San Diego. “It’s a structural shift.”
Not All Doom Downtown
Despite the pessimism, there are glimmers of opportunity. New buyers, such as tech entrepreneur Daniel Negari’s firm XYZ, are acquiring properties at discounted prices. They are repositioning them with modern amenities aimed at smaller or more flexible tenants.
San Diego’s residential appeal and oceanfront lifestyle continue to attract interest. New tourist draws like the Navy SEAL Museum and upcoming TED flagship conference could also help fuel a partial recovery.
What’s Next
Bren’s exit highlights a broader trend among institutional investors favoring selective, high-performing submarkets over struggling urban cores. For downtown San Diego, recovery may rely on creative repositioning and public-private partnerships. It will also require rethinking the post-pandemic office market.
Until then, San Diego’s skyline may stand tall—but with many of its office floors sitting empty.
