Meridian Tenant Advisors
Location case  ·  Defense & dual-use  ·  September 2026

Build it in
San Diego

The fleet, the program offices and the engineers are in one city, and every line in this document is cheaper, bigger or closer than the Bay Area. Published figures only.

42%
less

for R&D space than Silicon Valley. $1.75 a foot a month against $3.01.

$23.5M
less

a year to run a 500-person company. $63.2M here, $86.7M there. CBRE model, 2024 office inputs.

16–22%
less

to pay engineers than San Francisco. 25–31% less than San Jose.

3.9×
more

defense contract flow than the Bay Area. $11.67B against $3.02B.

What the space costs

R&D asking rent · $/SF/month, triple net · Q2 2026San DiegoBay Area
San Diego County
$1.75
Silicon Valley
$3.01
Peninsula · San Mateo Co.
$5.82

Silicon Valley is 1.7× the rate. Same firm, same quarter, same triple-net basis, no conversion between them. The Peninsula bar is a different firm, and that inventory is weighted to South San Francisco lab space.

$625

City business tax for a hundred-person company, a year in San Diego, flat whatever the revenue. San Francisco taxes gross receipts above $5M at 0.250–1.512% (manufacturing) or 1.000–1.680% (scientific and technical services), plus a homelessness tax above $25M and a $20,000 registration fee.

What the engineers cost · annual mean wage, one BLS release

Software developers

San Diego$163,300SF–Oakland–Fremont$193,430San Jose$221,710

16% under SF · 26% under San Jose

Electrical engineers

San Diego$131,220SF–Oakland–Fremont$162,170San Jose$189,370

19% under SF · 31% under San Jose

Mechanical engineers

San Diego$124,420SF–Oakland–Fremont$158,690San Jose$165,920

22% under SF · 25% under San Jose

Sample deliverable. Prepared for a fictional client. Figures are from the published sources named on each page.
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Meridian Tenant Advisors
Build it in San Diego  ·  2 of 2

The customer is already here

$11.67B

Defense contract obligations on work performed in San Diego County, FY2025.

63

Navy ships homeported in the region, and one of every six sailors in the Navy.

109,000

Active-duty service members, plus 27,000 Department of Defense civilians.

5,200

Scientists and engineers at NIWC Pacific, which writes and awards its own contracts.

22.2%

Of San Diego's gross regional product is military-related: $61.3B, on $39.3B of direct spending.

NAVWAR buys networks, C2, cyber and information warfare from Point Loma. Third Fleet runs West Coast experimentation from the same base. Coronado holds carrier aviation, Naval Special Warfare and the San Clemente Island range. Miramar and Pendleton put 3rd MAW and I MEF an hour up the road. Saronic, Firestorm Labs and Seasats have all opened or expanded here since 2025.

Where the money actually goes

Department of Defense prime contract obligations by place of performance · FY2025
San Diego County
$11.67B
SF, Santa Clara,
Alameda & San Mateo
$3.02B

Four Bay Area counties combined do not reach a third of San Diego's defense contract flow. Source: federal award data, obligations by place of performance.

Everything is twenty minutes from the gate

Free-flow drive time from the terminal
Downtown
6 min
Point Loma · NAVWAR
8 min
Kearny Mesa
17 min
UTC · La Jolla
17 min
Sorrento Valley
18 min

The airport sits three miles from downtown, so the whole defense corridor is a short drive from the terminal. Free-flow times on the open road network.

And the Bay is still an hour and a half away

Nonstop departures a week
to SFO · 1h42m
140
to SJC · 1h34m
112
to OAK · 1h46m
85

337 a week, about 48 a day. Alaska and Southwest fly all three; United and Frontier serve SFO. Investors and program offices stay a morning away.

And the rest of the case

176,906

Veterans in San Diego County, 6.9% of the adult population, more than the whole SF–Oakland–Fremont metro at 108,380, and four times San Jose.

2,920

Engineering degrees from UC San Diego in 2024–25, out of 10,240 enrolled. 4th nationally in federally financed R&D, ahead of Stanford.

26.1 min

Mean one-way commute, against 32.7 in San Francisco. About 55 hours a year back per employee, at 250 in-office days.

Sample deliverable. Prepared for a fictional client. Figures are from the published sources named on each page.
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