A fully leased 69,230-square-foot office building at 8911 Balboa Avenue in San Diego’s Kearny Mesa submarket has been listed for sale. The 3.24-acre property features a two-story structure built in 1990 and is offered on a fee-simple basis, though no pricing guidance has been provided at this time. Cushman & Wakefield is managing the listing on behalf of Menlo Equities, which purchased the property in 2017 for $21.25 million (roughly $307 per square foot). The property is 100 percent occupied by the County of San Diego Health and Human Services under a lease arrangement. Brokers note that the single-tenant structure provides ownership with the stability of an established government tenant, though specific lease terms and expiration details were not disclosed in listing materials.
Balboa Corporate Center features a two-story atrium lobby, conference center facilities, secure keycard entry systems, and outdoor seating areas. The building’s positioning along Balboa Avenue, described as a major thoroughfare in the area, provides access to multiple freeway connections including I-15, I-805, I-5, and Highways 63 and 52. According to the marketing flyer, the Kearny Mesa area benefits from strong daily traffic volumes, with the nearby 805 freeway carrying approximately 185,000 vehicles daily and Highway 52 seeing 107,000 daily vehicles.
Cushman & Wakefield’s Louay Alsadek and Maddie Mawby are handling the listing.
Located in Kearny Mesa, the Balboa Avenue property sits within a submarket that has seen recent investment activity. Earlier this year, CIM placed a 205,725-square-foot Class A+ office building at 5887 Copley Drive on the market through Newmark. That property, known as “Terraces,” was built in 2009 and sits on a bluff with visibility from major highways, as reported by The Registry. CIM acquired the Terraces property in November 2019 for $90.4 million. The building was designed with large, efficient floor plates to accommodate various tenant sizes, offering divisible space in what Newmark characterized as a Class A+ environment. Built in 2009, the property sits atop a bluff providing 360-degree views of Interstate 5, Highway 52, and the surrounding area.
Meanwhile, the San Diego County office market remained in a state of gradual stabilization during the second quarter of 2025, with modest fluctuations in vacancy, leasing activity, and development pointing to a transitioning landscape. The county recorded net negative absorption of -92,761 square feet in Q2 2025, bringing year-to-date net absorption to -329,493 square feet. Despite persistent negative demand, this quarter’s dip was relatively minor across a regional office inventory totaling nearly 83 million square feet. The overall vacancy rate increased slightly to 14.29 percent, up 12 basis points from the previous quarter, but only marginally higher than the 14.35 percent reported in Q2 2024. Market analysts noted that while this figure is elevated, it remains well below the historical high of 17.83 percent reached during the Great Financial Crisis in 2009, underscoring a more measured market adjustment.
