For institutional fund strategies, UTC & Torrey Pines carries the strongest investor flag in San Diego, with prime yields around 6.4%.

• Trophy submarket (UTC & Torrey Pines) carries the strongest investor flag.
• Prime yield: 6.4%.
• Core funds buy income; value-add buys repositioning of secondary stock.
• Cap-rate spread between trophy and secondary has widened post-2022.

TL;DR

• Trophy submarket (UTC & Torrey Pines) carries the strongest investor flag.
• Prime yield: 6.4%.
• Core funds buy income; value-add buys repositioning of secondary stock.
• Cap-rate spread between trophy and secondary has widened post-2022.

Where core funds buy

Core capital concentrates in trophy stock with long-WAULT income. In San Diego, that's UTC & Torrey Pines and assets like One La Jolla Center, The Campus at Horton.

Where value-add looks

Value-add capital looks at secondary Class A and convertible Class B with repositioning angle. The trophy/secondary cap-rate spread has widened post-2022, which has reopened the value-add basis for repositioning plays.

Key facts

Frequently asked questions

Where do core funds buy in San Diego?

Trophy submarket — UTC & Torrey Pines — and the most defensible long-WAULT assets within it.

Editorial provenance

Reviewed by Miriam Hollander — Lead market analyst. Last updated 2026-04-15. See our methodology and editorial standards.

Primary sources for this page

• CBRE Marketview reports — CBRE
• JLL Office Insight — JLL
• Cushman & Wakefield Marketbeat — Cushman & Wakefield
• Savills World Research — Savills
• Colliers Global Office Outlook — Colliers

Full sources index · Submit a correction

Related topics

• Trophy Asset Selection — How to identify and evaluate trophy Class A assets for a flagship requirement.