#USA #San Diego #La Jolla #Bird Rock #Encore Partners

La Jolla's Commercial Corridor Soars Above Competition

In the latest real estate news, La Jolla has made headlines as it ascends to the status of San Diego's most expensive commercial corridor. Notably, Bird Rock has seen a remarkable price surge, reaching $880.38 per square foot, which represents a staggering increase of 52.6% over the past 14 months.

A recent transaction involved the sale of a two-unit commercial condominium located at 5490 La Jolla Boulevard. Encore Partners LLP purchased this property in December 2025, further solidifying Bird Rock’s position in the commercial market. For reference, a previous comparable unit was sold for $632 per square foot in December 2024, and prior to that, the price was at $577 per square foot. This rapid escalation highlights how significantly the commercial market in La Jolla has outpaced other coastal areas in San Diego.

A Surge Backed by Data

According to CoStar data provided to Capital Growth Properties, Inc., the average commercial sales price in La Jolla is now pegged at $611 per square foot, nearly three times the figure for San Diego's urban core. This performance is particularly impressive when viewed alongside comparable submarkets such as:

• - Pacific Beach: $413/sf
• - Little Italy: $284/sf
• - Downtown San Diego: $231/sf

It's clear that La Jolla's commercial appeal significantly outstrips these other neighborhoods by a wide margin.

Dramatic Market Shifts

Interestingly, while pricing continues to climb, the number of transactions has dropped sharply. In just one year, the volume of commercial real estate transactions in La Jolla has decreased by 62%. During 2024, there were 22 sales totaling $199 million, but that number dropped to just 16 sales worth $76 million in 2025. Currently, the average days on the market for properties have decreased from 10.2 months two years ago to just 5.8 months today, which signals a highly competitive environment.

Todd Law, the Senior Vice President at Capital Growth Properties, Inc., commented, "You can't create more coastline or obtain additional permits for more properties in La Jolla. Prices are skyrocketing, while inventory remains limited. Those who seize opportunities in this market are clearly ahead of the game."

Demand in the Restaurant Sector

The increased interest in La Jolla isn’t limited to traditional commercial properties; two recent restaurant leases highlight an active demand. SHIO—a venture from the Takaramono Sushi team—is setting up in La Jolla Shores, while Mavi, a women-owned restaurant linked to Gaslamp's Mimoza, is establishing itself in the Village of La Jolla. As a result of this growing interest, asking rents have jumped to an average of $4.37 per square foot, nearly 70% above the county’s average of $2.60.

Looking Ahead

As of May 2026, La Jolla recorded 11 commercial transactions, reaching a total of $24.6 million. This influx of activity suggests a resilient market approaching the sales pace observed in 2025, even as property availability continues to tighten. Capital Growth Properties is keeping a close watch on Bird Rock and Village listings anticipated to enter the market this year.

Summary of Transactions

• - Sale: 5490 La Jolla Blvd., Units B and CC1, 2,536 sf, sold for $880.38/sf to Encore Partners LLP, brokered by Todd Law.
• - Lease: SHIO, 4,775 sf, located at 2259 Avenida de la Playa, La Jolla Shores.
• - Lease: Mavi, 4,330 sf, located at 7536 Fay Avenue, Village of La Jolla.

With its unique coastal charm and booming market dynamics, La Jolla is firmly positioned as a leader in commercial real estate, attracting investors and businesses alike to the area. As we proceed into 2026, the trajectory suggests that the trend is likely to continue, displaying La Jolla's resilient and evolving commercial landscape.

About Capital Growth Properties, Inc.
La Jolla-based Capital Growth Properties specializes in commercial real estate including leasing and investment sales. The firm actively utilizes CoStar Group resources for insights into market trends across San Diego County.