FOR IMMEDIATE RELEASE 
Monday, May 5, 2025

CONTACT:
MayorPress@sandiego.gov

SAN DIEGO – Delivering on the commitment made in his 2025 State of the City Address, Mayor Todd Gloria today announced a consolidation of leased City office spaces that will save approximately $13 million over five years, proving significant budget relief and helping address a longstanding structural fiscal deficit.  

As the City of San Diego faces a $258 million budget deficit for fiscal year 2026, Mayor Gloria’s administration has been diligently working to identify cost-cutting measures that will preserve services for the public.  

The Gloria Administration has renegotiated a lease for City-occupied office space at 525 B St. in Downtown, where staff from multiple City departments currently work on six floors of the building.  

Under the consolidation plan, staff from the Engineering and Capital Projects Department will move out of four floors of the B Street building and relocate to vacant City-owned office space on Gibbs Drive in Kearny Mesa. Staff from the Fire-Rescue Department will move from 525 B St. to the City-owned Civic Center Plaza Downtown.  

”For more than a decade, the City has been paying rent to a private corporation for six floors of office space. That ends now. Instead, we will be maximizing our own real estate for the benefit of San Diego taxpayers, helping us save people’s jobs, pave more roads, keep libraries open, and keep cops on patrol,” said Mayor Todd Gloria. “This is just one of many examples of our commitment to efficient governance and responsible stewardship of the public’s money.” 

Under a renegotiated lease that will provide significant cost savings, call-center staff from the Public Utilities Department will continue to occupy one floor of the B Street location to ensure no disruption in customer service. The new lease terms reduce the per-square-foot cost from $3.30 to $2. The City also will pay no rent for the first eight months of the new agreement. 

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