La Jolla Becomes San Diego's Priciest Commercial Corridor as Bird Rock Hits $880/SF, Up 52.6%

La Jolla pricing has climbed 52.6% in 14 months on Bird Rock, capped by a record $880/sf sale. CoStar data provided to Capital Growth Properties, Inc. shows La Jolla outpacing every San Diego coastal submarket.

SAN DIEGO, June 9, 2026 /PRNewswire/ -- A two-unit commercial condominium at 5490 La Jolla Boulevard in Bird Rock sold to Encore Partners LLP in December 2025 at $880.38/sf.

The previous comparable closed at $632. Before that, $577. A 52.6% climb across three arm's-length sales in 14 months on a corridor the broader market has barely tracked.

• Oct. 2024 • 7509 Draper Ave. • $577/sf
• Dec. 2024 • 5622 La Jolla Blvd. • $632/sf
• Dec. 2025 • 5490 La Jolla Blvd. • $880.38/sf

Source: CoStar Group. Comp IDs 6928493, 6991697, 7460187. Unit B: 1,166 sf, APN 357-603-02-47. Unit CC1: 1,370 sf, APN 357-603-02-48. Total: 2,536 sf. Corridor-level $/sf, three confirmed sales. Data pulled May 2026.

The December transaction is the highest price-per-square-foot commercial sale recorded by CoStar Group on the Bird Rock corridor. Todd Law, Senior Vice President at Capital Growth Properties, Inc., represented the buyer, Encore Partners LLP. Law has worked the La Jolla commercial market for 25 years.

"This is the kind of deal you wait twenty-five years for," Law said. "We saw where the corridor was going, the buyer saw it too, and we got there before the market figured it out."

La Jolla commercial sales averaged $611/sf over 12 months, nearly three times San Diego's urban core. Comparable submarkets:

• La Jolla: $611/sf
• Pacific Beach: $413/sf
• Little Italy: $284/sf
• Downtown San Diego: $231/sf

Pricing Is Climbing as Transaction Volume Collapses

La Jolla commercial transaction volume, according to CoStar:

• 2024: 22 sales • $199M total volume
• 2025: 16 sales • $76M total volume — a 62% drop in dollar volume
• Days-on-market: 5.8 months currently, down from 10.2 months two years ago

"You can't make more coastline, and you can't permit your way into more La Jolla," Law said. "Volume is down 62%. Prices are up over 50%. There just isn't enough product, and the buyers who get in now know it."

Operators Are Following the Data

Two restaurant leases reinforce demand: SHIO (Takaramono Sushi team) in La Jolla Shores, and Mavi (women-owned, sister to Gaslamp's Mimoza) in the Village of La Jolla. Asking rents now average $4.37/sf in La Jolla, almost 70% above the $2.60 county average.

What Comes Next

La Jolla logged 11 commercial transactions totaling $24.6M through May 2026, approaching 2025's pace as inventory tightens. Capital Growth Properties is tracking Bird Rock and Village assets expected to list this year.

Transaction Summary

• Sale • 5490 La Jolla Blvd., Units B and CC1 • 2,536 sf • $880.38/sf • Buyer: Encore Partners LLP • Broker: Todd Law
• Lease • SHIO • 4,775 sf • 2259 Avenida de la Playa, La Jolla Shores
• Lease • Mavi (women-owned) • 4,330 sf • 7536 Fay Avenue, Village of La Jolla

Data: CoStar Group, May 2026. La Jolla figures reflect 12-month trailing and YTD averages.

About Capital Growth Properties, Inc. Capital Growth Properties, Inc. is a La Jolla-based commercial real estate firm specializing in leasing, investment sales, and advisory. The firm maintains an active CoStar Group subscription with access to submarket pricing, vacancy, cap rate, and transaction velocity data across San Diego County.

Media Contact: Todd Law, Senior Vice President Capital Growth Properties, Inc. [email protected] • (858) 729-9300 CalDRE #01309241 | WA #27587

Issued by: Capital Growth Properties, Inc. Distributed by: PowerFuel Damas LLC — a global marketing and public relations agency.

SOURCE Capital Growth Properties, Inc.