Midway Rising Project: Potential Impact on Local Rental Market

The Midway Rising development is one of the most ambitious redevelopment proposals in San Diego in recent years. The plan centers on transforming the roughly 49 acres of the aging Sports Arena / Midway District site into a modern, mixed-use entertainment, housing, and commercial hub. Key components of the proposal include:

• Up to 4,254 residential units, with about 2,000 designated as affordable housing.

• A new 16,000-seat entertainment arena to replace the existing (and aging) Pechanga Arena.

• Approximately 130,000 square feet of commercial / retail space, parks, open spaces, and pedestrian / transit improvements.

• Infrastructure upgrades, including improved roads, transit access, stormwater, utilities, and mobility enhancements.
  

The development is still under review. The draft Environmental Impact Report (EIR) is in process, and various land-use, zoning, and community review steps remain. Because of its scale, the project is poised to reshape not just the Midway area but also ripple through neighboring coastal communities.

How Midway Rising Could Affect Nearby Rental Markets

When a major redevelopment like Midway Rising goes forward, it introduces both opportunities and challenges for landlords, property managers, and renters in adjacent neighborhoods. Below are possible impacts to the nearby neighborhoods including Point Loma, Ocean Beach, Mission Beach, and Pacific Beach.

Increased Demand and Competition

• Spillover demand: New housing, entertainment, and amenities may draw more people to the general area, increasing rental demand in nearby coastal neighborhoods. Tenants who prefer being near transit, nightlife, or events might look in OB, PB, Mission Beach, or Point Loma.

• Higher rents & property values: As more people compete for housing in desirable areas, rental rates could see upward pressure. Coastal properties may benefit from “halo effects” of being close to a revitalized district.

  
  

Pressure on Infrastructure, Traffic & Parking

• Traffic congestion: Events at the new arena and more commercial activity could significantly increase vehicle and pedestrian traffic. The draft EIR acknowledges that transportation, circulation, and related effects will be “significant and unavoidable,” even with mitigation.

• Parking strain: Increased demand for parking, especially during events, could stress limited street parking in nearby beach communities, potentially aggravating resident concerns, permit policies, or parking competition.

Shift in Tenant Preferences & Amenities

• Desire for transit access: If Midway includes strong transit links, connectivity to other parts of San Diego becomes more attractive. Tenants may prioritize properties with proximity to transit stops, walkable routes, or bike access.

• Preference for mixed-use environments: The trend toward “live-work-play” lifestyles means tenants may want nearby shops, restaurants, and entertainment. Coastal area properties that can market such conveniences may benefit.

Redevelopment-Related Disruption

• Construction impacts: Noise, demolition, road work, or utility upgrades might temporarily affect nearby neighborhoods. Some tenants might avoid rentals near construction zones until things settle.

• Zoning / regulatory spillover: The redevelopment may prompt local policy changes, overlay zones, or stricter land-use rules that could indirectly affect adjacent coastal areas (e.g., parking rules, height restrictions, density incentives).

Property Management Implications & Best Practices

Given these changes, property managers and landlords in coastal communities must adjust strategies to thrive. Here’s what to consider:

Benchmarking Rents with New Market Data

With an influx of new housing and amenities, traditional comparables may evolve. Managers should:

• Monitor how the new units are priced (both market-rate and affordable)

• Reassess rent comps in adjacent areas, factoring in “proximity premium” to Midway

• Adjust lease renewal incentives, factoring in new supply and tenant expectations

Emphasizing Value & Amenities

To compete, coastal properties should emphasize features that differentiate them:

• Walkability, coastal views, access to beaches

• Quality finishes, upgraded appliances, smart-home features

• Parking options or transit links

• Storm-prepped, well-maintained properties (especially given coastal exposure)

Tenant Screening & Stability

As demand increases, the pool of applicants grows—but not all are ideal. Thorough screening becomes more critical to:

• Avoid damage and turnover

• Select tenants who can afford rising rents

• Foster lease renewals rather than constant churn

Mitigating Disruptions

If construction or increased traffic affects tenants, property managers should:

• Communicate proactively (noise schedules, parking changes)

• Offer small rent concessions or perks during heavy disruption periods

• Ensure property maintenance is prompt to preserve tenant satisfaction

Long-Term Lease Incentives

To secure stability, managers might:

• Offer multi-year lease discounts or escalation caps

• Bundle amenities (e.g. parking, utilities) into lease packages

• Promote renewal incentives, especially once Midway nears completion

A Cautious Optimistic Outlook for Coastal Rental Markets

While the Midway Rising project is still under review, its scale and ambition suggest it will have meaningful effects. For coastal neighborhoods:

• The increased demand and amenities could uplift rental rates and property appreciation

• But this comes with greater pressure on infrastructure, traffic, and tenant expectations

• Strategic property management and forward-thinking landlord practices will matter more than ever

If you manage—or intend to own—rental property in Point Loma, Ocean Beach, Mission Beach, or Pacific Beach, the coming years will demand a sharper eye on market shifts, tenant expectations, and operational agility. By adjusting your policies, investing in property quality, and leveraging strong tenant relationships, you can position your rentals to benefit from the ripple effects of this massive redevelopment.