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Soaring Dimensions: Central San Diego
Where to be for what you do: Downtown San Diego
By DEREK DANZIGER
Centre City Development Corp.
Aug. 21, 2003

Whether it's the thousands of new homes, the excitement of the forthcoming ballpark or the planned addition of office space, new restaurants and retail shops, the pulse has quickened and people are flocking to downtown. The mixture of 117 residential, commercial and public infrastructure projects included on the Centre City Development Corp.'s current status report equates to $3 billion in development value.

Twenty cranes adorn the skyline, another clear indication of the positive changes occurring. Broadly marketing this positive transformation is essential to increase awareness of current housing options and business opportunities and assure the success of new developments.

Downtown San Diego has definitely reinvented its old image as a sleepy Navy town. It is now one of the most lively, progressive cities on the West Coast. Each day the improvements to the physical, social and cultural fabric of the heart of San Diego become more evident. It's "placemaking" at its best, and it's creating an ideal environment for working, living and playing.

So how are people getting the message that today's downtown is the place to be for what you do?

Strategic alliances between committed people, downtown organizations and residential and commercial developers are promoting the new opportunities. The Downtown Residential Marketing Alliance, or DRMA, and the Downtown Business Attraction Collaborative are attracting great interest in downtown.

"To successfully attract residents or businesses downtown, it's vital to create a place that serves people's needs and provides the amenities that create a good quality of life," said Peter Hall, CCDC president. "That wasn't always the case, however, our placemaking downtown is quickly creating a cosmopolitan environment where an eclectic blend of convenient amenities and services are at people's fingertips. This new urban buzz and vibrancy is evidenced by the many residents and businesses that have already, or are considering, relocating here."

Residential marketing

Smart growth and wise community planning suggest that a well-planned jobs/housing balance is essential to providing the employment base and lifestyle choices that benefit employees and employers. Downtown's location within the region, proximity to the airport, availability of neighborhood-serving retail and amenities, and arts and cultural opportunities are essential tools in attracting residents and businesses.

The popularity and convenience of urban living is a relatively new trend for San Diego, and is an important aspect of smart growth for a region with little available land left for future growth. Today most of the new homes are reserved before projects even break ground.

More than 10,000 homes have recently been completed, are under construction or are planned for downtown's eight neighborhoods in a wide blend of housing styles and price ranges. Nearly one-third of the units ensure affordability.

In 2002, downtown represented roughly 33 percent of total new home sales throughout the city, a dramatic shift from years past where downtown never accounted for more than 1 percent or 2 percent of the growth. According to MarketPoint Realty Advisors, in 2002, nearly 50 percent of the countywide, new attached home sales occurred in downtown San Diego, but even more notable was the fact that one out of every four new attached housing sales throughout southern California (Ventura to San Diego) also occurred downtown, another clear indicator of the urban allure.

The DRMA has been instrumental in assisting with the promotion of several new projects. In an unprecedented collaborative, 14 competing residential developers have teamed up with CCDC and the Downtown San Diego Partnership to cooperatively market the excitement of an urban lifestyle to prospective buyers. Through shared marketing dollars, a number of important initiatives are branding the revitalized downtown. Some notable successes include:

* Cooperative advertising between downtown developers;

* The launch of www.sandiegodowntown.org, promoting the live, work and play aspects of downtown;

* The addition of online Web Cams, enabling Internet users to watch downtown development activity directly from their home or office;

* Forums highlighting how to transition from a suburban lifestyle to the new urbanity;

* Creation of Downtown Residential Guide and Sales Office Map;

* Implementation of a weekly sales and activity program; and

* The widely popular Downtown by Design Housing Tour, giving more than 1,000 people the chance to tour eight private downtown homes in the Little Italy and Marina neighborhoods.

"We routinely hear comments from people that haven't visited downtown recently, and they marvel at the difference," Hall said. "The positive changes and improvements coupled with what's still planned have helped 92101 become one of the hottest addresses in town."

Each of these important initiatives has helped to build the awareness and interest in downtown's residential community.

Business marketing

While downtown's residential boom continues, the effort to attract new businesses remains of high importance. The Business Attraction Collaborative was established to provide a one-stop shop for incentives and assistance for firms interested in a downtown location.

A recent survey of more than 100 chief executive officers throughout the country conducted by the San Diego Regional Economic Development Corp. indicated that San Diego is well positioned for the next wave of business growth.

The eyes of the world fell upon downtown during Super Bowl XXXVII last January, and many noted the impressive transformation that had taken place even since 1998, the previous time San Diego hosted the "Big Game." More than 300,000 visitors, including hundreds of corporate executives from across the country, enjoyed activities and were exposed to the charms and opportunities downtown.

Several factors influence a company's decision to relocate or expand, including the availability of housing for employees, proximity to amenities and services, ability to find a talented work force and the accessibility of office space. An important nexus exists between the availability of new housing and the supportive climate for new business growth.

"I believe that creating a balance between affordable, market-rate housing, mixed-use development and infrastructure are vital to the economic well-being of businesses in our downtown," said Chris Veum, chair of the Downtown San Diego Partnership. "In order to attract and retain those businesses, we will need to continue to work on that balance. We need to also let people know that there is a swell of affordable living in downtown, not just high-end living units. The quality of life in our downtown is ever increasing as new development spreads, enhancing vital infrastructure and stitching together all aspects of urban living."

It's been more than 10 years since One America Plaza, downtown's last Class A office high-rise building, was constructed. That could soon change.

Lankford and Associates is looking to break ground in September on Broadway 655, a 450,000-square-foot high-rise office project on the southeast corner of Broadway and Kettner Boulevard, directly to the west of the Koll Center. Construction beginning on this important project would be an indication that the downtown office leasing market is positioned for further growth. Another 850,000 square feet of new office space also remains in the CCDC pipeline.

Today's economic climate poses a challenge to any program to attract new businesses. Even so, progress has been made and groundwork laid, including:

* Research to determine sectors of business and targeted cities for a campaign;

* A profile of downtown business leadership by California CEO Magazine;

* Showcasing downtown at CoreNet Global's International Conference at the San Diego Convention Center;

* Development of advertising and print materials;

* National and local stories and special sections highlighting downtown San Diego;

* Creation of a downtown business database at www.sandiegodowntown.org;

* New and renewed Web sites; and

* Development of a downtown brand logo and "toolbox."

While business development and attraction remains a slower process than residential growth, it's clear that downtown has reinvented itself as an ideal location for both.


Downtown residential and business resources

CCDC offers free bus tours on the first and third Saturdays of each month that showcase the ongoing wave of new development. To make reservations, call (619) 235-2222.

Also, the second annual Downtown by Design Housing Tour is scheduled for Oct. 4 and 5 from 9 a.m. to 5 p.m. To make reservations or learn more about this year's event, call (619) 233-5008 or visit www.downtownbydesign.com.

To discuss current downtown business opportunities, contact CCDC at (619) 235-2222.

To learn more about downtown's redevelopment activity, visit www.ccdc.com, or to learn about living, working and playing downtown, visit www.sandiegodowntown.org









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