Population
1,386,932
Growth (5Y)
+4.2%
Median Income
$83,000
Metro GDP
$254B
Market Overview
San Diego occupies a unique position in California's NNN landscape — offering cap rates slightly above Los Angeles (4.25–5.75%) while delivering comparable tenant quality and demographic fundamentals. The city's economy is anchored by the US Navy's largest installation, Qualcomm, and one of the most productive biotech clusters in the world. NNN investors prize San Diego for its combination of high-income consumers, constrained supply, and tourism-driven retail resilience. Assets in Mission Valley, Chula Vista, and the I-15 corridor consistently attract competitive bidding.
Key Highlights
Nation's largest naval base and defense sector create a stable, government-backed economy
Biotech and life sciences sector drives one of the highest-educated workforces in California
Year-round tourist economy (40M visitors/year) sustains QSR and convenience retail revenue
Limited coastal development creates structural supply constraints that protect NNN valuations
How the Market Has Evolved (2020–2025)
San Diego's NNN market from 2020 to 2025 was defined by biotech expansion and defense sector stability. While other California markets saw net out-migration, San Diego's biotech and military employment anchors kept population largely stable, and housing demand from Navy personnel and researchers remained consistent. The 2021–2022 housing boom pushed residential values up 35–40%, pulling NNN cap rates down as 1031 exchange investors flowed from sold residential holdings into commercial net lease. Drive-thru QSR development — particularly Starbucks and Chick-fil-A — accelerated in South San Diego (Chula Vista, National City) as that submarket's demographics improved rapidly. By 2025, San Diego NNN cap rates had compressed from 2020's 5.0–6.25% range to the current 4.25–5.75%.
Why Invest in San Diego
- 1Military and biotech employment base provides recession-resistant consumer spending
- 2Coastal California quality at cap rates above Los Angeles — best yield-per-risk in Southern California
- 3Tourism economy sustains QSR revenue through economic downturns
- 4Limited new supply and high land costs create structural long-term appreciation
Recent NNN Activity
"2025 has seen strong NNN absorption in the Chula Vista and Mission Valley corridors. Starbucks drive-thru assets in Otay Ranch traded at 4.75–5.25%. McDonald's ground leases in Mission Valley continue to attract institutional buyers at 4.25–4.75% cap rates."
NNN Snapshot
Cap Rate Range
4.25% - 5.75%
Price Range
$2.2M - $6.5M
Avg Lease Term
14 Years
Unemployment Rate
3.8%
Active NNN Tenants
McDonald'sStarbucksCVS PharmacyWalgreensChick-fil-AChase Bank7-Eleven
Major Employers
UC San Diego HealthSharp HealthcareQualcommGeneral AtomicsScripps HealthNaval Base San Diego
Find NNN Properties in San Diego
Our advisors have exclusive, off-market NNN inventory in the San Diego market right now. Contact us to see what's available before it hits the public market.