Under our real estate advisory services agreement, the San Diego Unified Port District requested that RSG prepare a market feasibility study to understand the potential interest by entertainment and “eatertainment” site selectors in this location along the San Diego Bayfront. The District controls tideland properties in the San Diego and South Bay area and makes them available where appropriate to private development compatible with the Port’s real estate and land use needs.
The subject site is a 6-acre property in the desirable East Harbor Island area close to San Diego International Airport. The Port is simultaneously negotiating with Topgolf on an adjacent property, which would transform the area from non-public uses to a mixed-use area. Originally the Port was considering hotel uses for the site, but with some unsolicited interest from one major pickleball franchise, the Port requested RSG to validate the extent of the demand to warrant proceeding with a formal solicitation to a larger group of site selectors.
RSG’s work included assessment of market conditions, including the recovery of the San Diego office and tourism industries, review of peer locations across the nation, and interviews of site selectors. Ultimately, we identified nearly a dozen different brands that expressed some interest in the site, which in many cases would serve as an anchor for a west coast expansion for many of these companies. Our findings were presented to the Commission in December 2023, and the Port is proceeding with an RFP in the first half of 2024.