San Diego is the third largest biotech cluster within the U.S. and has turn out to be a prime focus for actual property traders, who maintain a considerable slice of the market, in response to a brand new report.
Institutional traders are estimated to personal 44% of current life science lab and workplace area within the area, and one, IQHQ, a non-public actual property funding belief in Solana Seashore, owns 21 such properties.
Part 3 RE Companions, a San Diego developer, can be thought of a participant out there. in response to a mid-year overview of the nationwide life science sector by Newmark, a industrial actual property agency based mostly in New York.
Right here’s a breakdown of the recent areas within the San Diego market, with a complete of almost 21.3 sq. ft of analysis and improvement and laboratory area obtainable:
- Sorrento Mesa – nearly 6.9 million sq. ft of area with a 5.7% emptiness fee.
- Sorrento Valley – 1.5 million sq. ft of area with a emptiness fee of two.6%.
- Torrey Pines – 5.5 million sq. ft of area with the bottom emptiness fee within the area, 1.3%.
- UTC – 4 million sq. ft of area with a 2.6% emptiness fee.
As lease charges proceed to rise – the very best, in response to the Newmark report, are in Torrey Pines and UTC – close by submarkets reminiscent of Del Mar Heights have began to emerge as candidates for brand spanking new life science clusters.
These submarkets collectively supply 3.35 million sq. ft of area. Greater than 11 million sq. ft of further area is proposed, half in Sorrento Mesa.
The expansion has been additional stoked as increasing biotech companies search bigger blocks of area exterior the area’s conventional life science hubs. Tenants regarded to be in enlargement mode embrace Eurofins, Cibus, Debut Bio, LocanoBio, InvivoScribe and SmartLabs.
Total, Newmark analysts positioned the gross sales quantity within the final 12 months for San Diego lab and R&D area at $3.4 billion.
San Diego trails solely Boston and San Francisco as the highest life-science clusters nationally. The trio proceed to be the epicenter of leasing and capital markets exercise.
Mixed, these 4 markets make up over 93 million sq. ft of laboratory and associated area with a future building and renovation pipeline of 33.2 million sq. ft.
To match, over previous 12 months, gross sales quantity in Boston and the Bay Space exceeded $5 billion.