Spaces Takes 3 Floors at San Diego Conversion Project

The coworking space provider preleased more than 43,000 square feet at Kettner & Ash, an office property undergoing a complete transformation in Little Italy.

DivcoWest Real Estate Services and Ocean West Capital Partners have closed a long-term lease agreement with Spaces at Kettner & Ash, a seven-story office building undergoing redevelopment in San Diego’s Little Italy neighborhood. The coworking giant preleased 43,540 square feet at the property and is expected to move into the new space by late 2019.

Spaces will occupy the first three floors within the 123,062-square-foot building at 1420 Kettner Blvd. The former U.S. Bank Building is being converted into a boutique Class A office property. Gensler is spearheading the transformation project, while Reno Construction is the general contractor.

Tenant-oriented enhancements

One of the most significant improvements at Kettner & Ash will be a contemporary facade featuring an energy-efficient clear glass wall curtain. Furthermore, a five-story LED panel array in the building’s atrium will display digital artwork. Upgrades will also include the addition of an outdoor event patio on the third floor that will serve as a common-area tenant amenity. The patio will comprise an indoor/outdoor tenant lounge with seating, an entertainment area and a kitchen. Other enhancements at Kittner & Ash will feature a new café/restaurant, shower, lockers and a private ground-floor tenant patio.

Cushman & Wakefield Managing Director Derek Hulse and Director Philip Roberts worked on behalf of the landlord, while CBRE represented the tenant. Spaces is expanding at a rapid rate—the company recently preleased 47,000 square feet in Lehi, Utah, and signed a 53,000-square-foot lease in Austin.

“The general appeal of Kettner & Ash is the high-quality aesthetic, large open-floor plates, access to multiple modes of transportation including San Diego International Airport, proximity to the waterfront and an amenity base, which includes dozens of choice dining options within a few blocks …,” Roberts said in prepared remarks.

“Kettner & Ash has received great interest from a diverse tenant base who specifically want to be located in Little Italy due to its access to the freeway and trolley line, the bay, housing and a multitude of food and beverage options,” added Hulse.

Renderings courtesy of Cushman & Wakefield