Parallel Capital Sees Flight to Rents in Sorrento Valley
A string of deals in Sorrento Valley Commercial has one commercial real estate exec seeing a flight to lower rates in San Diego office.
We spoke with Parallel Capital Partners' Jim Ingebritsen regarding the firm's recent slew of office deals at its Sorrento Valley Road office complex is a result of spiking rents in Del Mar, Torrey Pines, Sorrento Mesa and La Jolla/UTC. "As rents rise in those markets, tenants are seeking more cost-effective solutions," Jim says. Couple that with office product that can be "converted to more creative uses, [and] Sorrento Valley provides these tenants with more options than what they see in the adjacent markets."
Most recently, MabVax Therapeutics inked a deal for lab space to 11535 Sorrento Valley Rd for 15k SF (with Cushman & Wakefield's Brian Stark, Dave Odmar and Ted Jacobs brokering). Other recent deals for Parallel include video game maker Intrepid Studios, which scored nearly 6k SF at 11558 Sorrento Valley Rd (with JLL's Tim Olson brokering), and Hamari Chemicals, which leased 6,500 SF of lab space at 11494 Sorrento Valley Rd (and C&W's Ted Jacobs again brokering).
Jim says he's very bullish on SD's economy given its employment base. "San Diego has shown its resilience over the years and its ability to adapt and react to change in any sector," he says. "The one red herring out there is the risk associated with Qualcomm." Beyond SD, Jim says it's seeking investments in Phoenix, Honolulu, Denver and Dallas.