San Diego tweaks deal to convert 101 Ash office tower into affordable housing

Why this matters

Office continues to trade in two distinct markets: trophy assets in walkable submarkets that are leasing at or near record rents, and commodity Class B and C buildings where the basis is still resetting. Underwriting on the latter has moved toward replacement-cost-minus, with credit underwriting now leaning on tenant covenant and remaining lease term rather than mark-to-market expectations. San Diego life sciences vacancy remains the lowest in the major life-science clusters, and multifamily fundamentals continue to be supported by a coastal supply ceiling. For LP-positioned capital, the read-through is that the bifurcation is now a structural feature of the sector, not a cycle to wait out.

Editorial analysis · Real Estate Trail Editorial

On the RET wire

• The 14th San Diego story tracked on the wire in September 2026. All San Diego coverage →
• Disclosed office deal value tracked in September 2026: $14.7B across 78 reported transactions. All Office coverage →

Computed from Real Estate Trail’s own tracked coverage

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