A spectacular 700-plus condominiums were sold Downtown last year. Even more startling is that 100 of them sold for more than $1 million. Going back to the turn of the century (2000, that is), virtually no one, including me, would have predicted that the market would mature in so short a time.

Yet equally exciting is the progress on the commercial front. Sometimes the commercial activity gets forgotten. But rest assured, it is growing with great fervor in several segments.

More Rooms And Inns

As we have noted in the past, the convention business in Downtown San Diego is being thwarted by a shortage of convention-service hotel space. True, we did add the delightful Solamar this year and the Marriott ex-Clarion. Unfortunately, they are not quite big enough to satisfy our massive convention business. We need monster-sized hotels. Fortunately, monsters are on the way.

The 1,190-room Hilton across from the ballpark recently broke ground. and the 400-room Hard Rock is well under construction. Still to come are the 344-room Marriott Renaissance, the 193-room Marriott Residence Inn and the newly announced 350-room Regent, affixed to the backside of Horton Plaza. That’s more than 2,000 rooms coming on line in the next two and a half years.

Another cherry is the redo of the Hotel Maryland into a 160-room luxury boutique hotel by the Kelly Group and, of course, the pending return of the U.S. Grant, coming this November, renovated to its historic glory by Sycuan interests. Added together, these total more than 5,000 rooms.

Finally, Employment Bastions

On the office scene, one is in the basket and four are in the chute. New and open for tenants is 655 Broadway, Rob Lankford’s masterpiece. The four on the way are the 100,000-square-foot San Diego Housing Commission at 12th Avenue and C Street, the 236,000-square-foot Diamond View Tower overlooking right field at Petco Park, the 28,000-square-foot TR Produce office condos near the ballpark, and Howard Berkson’s 80,000-square-foot MetroWorks in Little Italy (the first ground-up office condo Downtown and nearly sold out). Although this can’t compare to the 10 million square feet under way in Manhattan, it’s pretty good for a Downtown that, since Broadway 655, had not added office space since 1991.

Soon to follow in the public domain is the 472,000-square-foot Richard Meier-designed Federal Courthouse on Broadway. It doesn’t have enough parking, but it will still add a new dimension to Downtown’s government profile. Who knows? Maybe someday we’ll even get a new City Hall to replace our municipal embarrassment. I know several developers who would be more than willing to build a new city hall on a sale-leaseback. It’s a smart idea; maybe Mayor Sanders is listening.

Snappy Stores

On the retail side we are about to have our second Downtown supermarket: an Albertsons (or its successor) at SRM’s Market Street Village at 13th Avenue and Market Street in East Village. The aforementioned Diamond View will have 72,000 square feet of retail space on its first two floors.

In the Gaslamp Quarter, not much new retail space is being added this year, save in Champion/Hovnanian’s Gaslamp Square mixed-use project at Fifth Avenue and K Street, and that’s virtually all leased. Retail leasing master Bill Shrader says Gaslamp and Little Italy remain super hot with rents pushing $4 per square foot, per month. Don’t worry, San Diego Hardware’s 10,000 square feet won’t be vacant long.

The most enchanting retail story is that national credit tenants are finally getting the word Downtown San Diego is more than Horton Plaza. Note the logos of Urban Outfitters, Adidas, Forever 21 and Skechers. As Gaslamp fills up, more quality retailing will open in East Village. Several national retailers are circling the fort at Diamond View.

To Rent And Afford

Many of the condominium projects under way have small amounts of retail space for neighborhood use. Space for the beauty salon, barber, deli, valet and video rental. Just like real downtowns.

Not solidly in the “commercial” category, but not condominiums, is the rental apartment category. Condos get all the glory, but we need rental housing, too, especially after 101 Market and 777 6th converted to condominiums. Fortunately, a few folks have figured out how to make the numbers work for rentals.

Hanover Co. is building a 146-unit 11-story project at Front and Cedar. OliverMcMillan is well advanced in construction at the G Lofts West at 677 Seventh Ave. and has now broken ground on the 208-unit Lofts at 707 10th Ave. Essex/Barone Galasso has announced another rental project, following its nearby Palermo success (converted to condos prior to completion). The new project will have 177 units. Still to come are a few more rental projects by OliverMcMillan.

Affordable housing? There may be some. The John Moores interests and Lennar are moving ahead with 136-units near Father Joe’s place at 16th Street and Market. The project will feature two- and three-bedroom units.

The Centre City Development Corp. is looking for a developer to build 250 units at Ninth Avenue and Broadway, where Bud Fischer once proposed 400 units. CCDC also is in various stages of negotiations on roughly a dozen other affordable housing projects, including four on publicly owned sites in East Village.

Overall, commercial development is all over 92101. It is a pleasure to see it blossom as Downtown San Diego moves into its next generation of retail and residential product.

Alan N. Nevin is director of economic research with MarketPointe Realty Advisors (marketpointe.com), a consultancy providing real estate and demographic statistics, feasibility studies and litigation support to the California land use industry and legal professions. Nevin can be reached by e-mail at anevin@sandiegometro.com.