Downtown San Diego megaproject developer IQHQ announced Thursday it had added its first retail tenants to its office complex, including luxury gym Equinox.
The IQHQ building, called the Research and Development District, or RaDD, on San Diego’s waterfront has yet to announce any life science tenants, which was the main aim of the 1.7 million-square-foot project.
Developers have had better luck getting retail clients. On Thursday, it said it had added Equinox; a show room for electric truck manufacturer Rivian; Javier’s, a high-end Mexican restaurant; and The Shade Store, a window treatment company. The building is nearly complete, but efforts to secure tenants have gone on for more than a year.
IQHQ said the addition of the new tenants means 50 percent of its nearly 200,000 square feet set aside for retail was now filled. Tracy Murphy, co-CEO of IQHQ, said in a statement that the building was coming alive with the new tenants.
“RaDD is a premier district designed to benefit both the industry we serve and the broader community,” she wrote, “with world-class shopping, dining, events, and engaging outdoor space, including 19 incredible public art installments.”
Alan Nevin, director of economic research for San Diego-based construction management company Gafcon, said he wasn’t convinced the new retail businesses would be enough to convince biotech companies to move downtown. He noted the nearby Campus at Horton has added several retail tenants, like Shake Shack, but it has not attracted the life science or tech communities.
In contrast, the center of the region’s biotech industry, Sorrento Valley, has seen several massive leases this summer. Vividion Therapeutics, a biopharmaceutical company, signed a 10-year lease in June for 127,382 square feet of space at 10075 Barnes Canyon Road, which is a new building nearing completion.
“They have not been able to drag anyone downtown,” Nevin said of Horton and IQHQ.
Even if the office space is empty at IQHQ, the high-end gym Equinox might appeal to downtown’s more affluent residents. The gym, which has locations across the nation including in Carlsbad, is famous for its spas, Pilates and yoga classes, and personal training. It launched a $40,000-a-year longevity program in April that it said would include lab tests, personalized training and nutrition programs, and other perks.
Equinox does not list prices for memberships on its website, but finance website Nerdwallet said memberships can range from $200 to $405 a month.
IQHQ also announced in March it had partnered with the San Diego Padres’ special event team to manage and operate its special events venue, Eve. The 7,800-square-foot space features 19-foot ceilings and views of San Diego Bay.
RaDD takes up six blocks of the former Navy Broadway Complex, an expansive swath of prime real estate south of Broadway between Pacific Highway and Harbor Drive with unrivaled proximity to San Diego Bay.
In September 2020, IQHQ acquired the leasehold for the federal land from Manchester Financial Group, paying $230 million for an 8.7-acre portion of the complex. The firm also bought from Manchester a connected block reserved for a public park. The life science real estate developer later entered into an agreement with the city of San Diego to build and manage the park.
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