Tuesday, June 9, 2026
Bird Rock sale sets record as La Jolla prices climb
The two-unit commercial condominium was purchased by Encore Partners LLP for 2.23 million.
Photo courtesy of Capital Growth Properties, Inc.
An aerial view of La Jolla’s commercial corridor.
An aerial view of La Jolla’s commercial corridor.
Commercial property prices in La Jolla have climbed sharply even as the number of transactions has declined, with a recent sale in the Bird Rock neighborhood setting a record for price per square foot, according to brokerage data.
A two-unit commercial condominium at 5490 La Jolla Boulevard was sold in December for $880.38 per square foot, the highest price recorded for a commercial property in Bird Rock, according to data from CoStar provided by San Diego-based Capital Growth Properties Inc.
The 2,536-square-foot property was purchased by Encore Partners LLP. Todd Law, senior vice president at Capital Growth Properties, represented the buyer.
CoStar data showed that commercial pricing along the Bird Rock corridor increased 52.6% over a 14-month period, rising from $577 per square foot in October 2024 to $632 per square foot in December 2024 before reaching the record-setting December 2025 sale.
Law, who has specialized in La Jolla commercial real estate for 25 years, attributed the increase to limited inventory and continued demand for coastal properties.
"You can't make more coastline, and you can't permit your way into more La Jolla," Law said in a statement. "There just isn't enough product, and the buyers who get in now know it."
During the past 12 months, commercial properties in La Jolla sold for an average of $611 per square foot, according to CoStar. Comparable figures were lower in other San Diego submarkets, including Pacific Beach at $413 per square foot, Little Italy at $284 per square foot and downtown San Diego at $231 per square foot.
At the same time, transaction activity has slowed. CoStar data showed 22 commercial sales totaling $199 million in La Jolla during 2024. In 2025, the number of sales fell to 16, with total dollar volume dropping to $76 million, a decline of about 62%.
Properties are also spending less time on the market. Average days on market currently stand at 5.8 months, compared with 10.2 months two years ago, according to Capital Growth Properties.
Commercial leasing activity has continued in the area.
Recent restaurant deals include SHIO, operated by the team behind Takaramono Sushi, which leased 4,775 square feet at 2259 Avenida de la Playa in La Jolla Shores, and Mavi, a women-owned concept affiliated with Gaslamp Quarter restaurant Mimoza, which leased 4,330 square feet at 7536 Fay Avenue in the village of La Jolla.
Asking rents in La Jolla averaged $4.37 per square foot, nearly 70% higher than the countywide average of $2.60 per square foot, according to CoStar.
Through May, La Jolla had recorded 11 commercial transactions totaling $24.6 million this year, putting the community on pace to approach 2025's transaction levels despite continued inventory constraints, the brokerage said.
CoStar data cited in the report was current as of May.
A two-unit commercial condominium at 5490 La Jolla Boulevard was sold in December for $880.38 per square foot, the highest price recorded for a commercial property in Bird Rock, according to data from CoStar provided by San Diego-based Capital Growth Properties Inc.
The 2,536-square-foot property was purchased by Encore Partners LLP. Todd Law, senior vice president at Capital Growth Properties, represented the buyer.
CoStar data showed that commercial pricing along the Bird Rock corridor increased 52.6% over a 14-month period, rising from $577 per square foot in October 2024 to $632 per square foot in December 2024 before reaching the record-setting December 2025 sale.
Law, who has specialized in La Jolla commercial real estate for 25 years, attributed the increase to limited inventory and continued demand for coastal properties.
"You can't make more coastline, and you can't permit your way into more La Jolla," Law said in a statement. "There just isn't enough product, and the buyers who get in now know it."
During the past 12 months, commercial properties in La Jolla sold for an average of $611 per square foot, according to CoStar. Comparable figures were lower in other San Diego submarkets, including Pacific Beach at $413 per square foot, Little Italy at $284 per square foot and downtown San Diego at $231 per square foot.
At the same time, transaction activity has slowed. CoStar data showed 22 commercial sales totaling $199 million in La Jolla during 2024. In 2025, the number of sales fell to 16, with total dollar volume dropping to $76 million, a decline of about 62%.
Properties are also spending less time on the market. Average days on market currently stand at 5.8 months, compared with 10.2 months two years ago, according to Capital Growth Properties.
Commercial leasing activity has continued in the area.
Recent restaurant deals include SHIO, operated by the team behind Takaramono Sushi, which leased 4,775 square feet at 2259 Avenida de la Playa in La Jolla Shores, and Mavi, a women-owned concept affiliated with Gaslamp Quarter restaurant Mimoza, which leased 4,330 square feet at 7536 Fay Avenue in the village of La Jolla.
Asking rents in La Jolla averaged $4.37 per square foot, nearly 70% higher than the countywide average of $2.60 per square foot, according to CoStar.
Through May, La Jolla had recorded 11 commercial transactions totaling $24.6 million this year, putting the community on pace to approach 2025's transaction levels despite continued inventory constraints, the brokerage said.
CoStar data cited in the report was current as of May.
