Sandag is entering a new head office in the city center-San Diego Union-Tribune

The main transport agency in San Diego has moved into its new house in a fashionable skyscraper on the west side of the city center, its emblematic relocation of the dynamics of travel offices on the market.

Tuesday, the association of governments of San Diego officially started its residence as a tenant of the anchor office in West, where it rents 87,308 square feet of space spread over three floors in the mixed use building. The agency pays a basic monthly rent of $ 4.15 per square foot for the first 12 months of the 15 -year lease, or $ 4.3 million in total.

The move was cemented Thursday and Friday afternoon with the working group on the preservation of the Sandag coast and the transport committee for the very first public meetings in the new space.

The relocation of Sandag ends the presence of 35 years of the agency at the building Wells Fargo Plaza at 401 B St., where it rented 30% more space at a cheaper rate.

The new contract was however supervised by the former director general of the agency as both economically and strategically higher, because the rental conditions would have been more favorable than those offered in comparable buildings in the city center and that the location of the building is closer to the deposit of Santa F.

“After having evaluated four appropriate properties of the city center, including a renewal option, the Sandag’s board of directors authorized a 15-year lease for the new location. The new office was selected according to several key criteria set by the Council, in particular the cost, the economic advantages, operational efficiency, public access and security,” said Sandag in a press release.

Developed by Holland Partner Group, the 37-storey western tower at 1011 Union St. is a unique wedding of office, residential and retail uses, and is punctuated by flashy conveniences intended to move the center of gravity of downtown San Diego along Broadway.

The scratch of $ 510 million opened its doors last year and includes 10,000 square feet of display on the ground, 289,000 square feet of office space spread over the first eight floors, a level of pleasure shared on the ninth floor and 431 apartments on the upper levels. It is completed by a roof terrace reserved for residents with interior and outdoor areas and a swimming pool overlooking the city center.

Sandag supervises long -term planning of county infrastructure and transit needs and has 425 employees. In August 2023, the agency signed a 15 -year lease with a mandate that begins during moving in and included a five -year option to extend. The space will house 300 staff members, said a spokesperson for sandag.

“This project represents the quintessence of the best office spaces in the city center in its category, supplemented by unrivaled mixed use equipment,” said Brentzer, Managing Director of Holland. “The innovative sandaga planning and the avant-garde vision for the San Diego region are a real reflection of high quality tenants that we are proud to welcome in West.”

Sandag’s basic rent increases approximately 3%each year, going from a starting rate of $ 4.15 per square foot to $ 6.28 per square foot at the end of the duration. The organization will pay $ 80.9 million in basic rent during the life of the 15 -year contract.

The agency is also on the hook for a share of operating expenses of the building and has the possibility of renting 116 parking spaces at $ 200 per space, per month, depending on the rental contract.

The costs of improving tenants, who have not been disclosed, were paid by the owner.

For the next fiscal year, which begins on July 1, Sandag plans to spend $ 4.7 million on rent and occupation expenses, according to a budget project for the 2026.

Sandag uses a quarter of the ground floor of the building for its board room which is oriented on the stock market, with the very visible location intended to create more transparency and to help the landscape of the city center. Sandag’s workforce is on the third and fourth floors of the building. Its reception is on the fourth floor.

The workspace has an open provision with a single private office dedicated and several telephone rooms, said Schertzer. There is also a large conceptual kitchen open with stand seats, he said.

Employees have access to the level of ninth floor equipment, which includes a space similar to a coworking with seats, televisions, telephone pods and an outdoor terrace. The level also includes a 4,200 square feet gym with an additional space for outdoor training sessions and changing rooms.

This decision comes less than a year in the mandate of the new CEO of Sandag, Mario Orso, who inherited a rental agreement of which he initially seemed less than satisfied.

“When I arrived, there had already been a 15 -year lease in the new building. We evaluated what the possibilities were. We were essentially in the new building by signing the lease,” said Orso at a meeting of the board of directors on September 27. “The biggest challenge I have seen, almost the first day, was chaos or the concerns of employees.”

Orso said employees were concerned about confidentiality, space limitations and proposed bench places. As a result, Orso said he had adopted a more traditional office seats.

The agency uses a hybrid work schedule and office sharing in West. All services must be at the office two days a week, said a spokesperson for the agency.

Sandag previously rented 114,079 square feet at Wells Fargo Plaza, where he paid $ 3.19 per square foot in 2023. The costs of rent and occupation for the old installation were $ 4.5 million during the financial year 2024. During the current financial year, the rent was originally budgeted at $ 3 million. The amount was then increased by $ 925,000 to extend part of the Wells Fargo Plaza contract until April and adapt to relocation.

The West offices are 40%, said Richard Gonor, a executive of the real estate company Jones Lang Lasalle which manages offices. HNTB Corporation and HDR Engineering Inc., who do business with sandag, rent 17,000 square feet and 9,000 square feet, respectively, on the second floor.

Originally published: April 4, 2025 at 4:14 p.m.