La Jolla pricing has risen 52.6 percent over 14 months along Bird Rock, highlighted by a record $880 per square foot transaction. CoStar data shared with Capital Growth Properties, Inc. indicates La Jolla leads all San Diego coastal submarkets.

/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 per square foot.

The prior comparable closed at $632 per square foot. Earlier, the figure stood at $577. This reflects a 52.6 percent rise across three arm's-length sales in 14 months on a corridor the wider market has largely overlooked.

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 marks 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 operated in 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 heading, the buyer recognized it as well, and we arrived before the market caught on."

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

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 percent drop in dollar volume
Days-on-market: 5.8 months currently, down from 10.2 months two years ago

"You cannot create more coastline, and you cannot permit your way into more La Jolla," Law said. "Volume is down 62 percent. Prices are up over 50 percent. There simply is not enough product, and the buyers who enter now understand it."

Operators Are Following the Data

Two restaurant leases underscore 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 per square foot in La Jolla, almost 70 percent above the $2.60 county average.

What Comes Next

La Jolla logged 11 commercial transactions totaling $24.6M through May 2026, nearing 2025's pace as inventory tightens. Capital Growth Properties is monitoring 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.