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Pandemic Accelerates San Diego Life Sciences Sector Momentum
The coronavirus pandemic has accelerated momentum in the U.S. life sciences industry, particularly amid the race to produce a COVID-19 vaccine and develop other medicines for human ailments. That has meant more growth for metros like San Diego, which ranks third on CBRE’s list of the largest U.S. life sciences markets in its new report on the sector.
Nationally, the life sciences sector has reached new highs this year in R&D employment and venture-capital funding. Those and other factors have resulted in a surge in demand for life sciences real estate.
CBRE’s Ryan Egli says, “San Diego continues to be one of the top innovation clusters in the United States, given the concentration of top-ranked universities, independent research institutions and pharma R&D presence in the region. Demand in the sector has continued to improve during the pandemic. Companies are currently seeking a total of two million square feet in the market, which is a historically high and causing an imbalance of supply and demand.”
The region’s standing reflects the 16 million square feet of life science inventory, scarce available supply, and a fast-growing high-tech sector that continues to blossom in the region. Additionally, average asking lease rates for lab space in the San Diego market have risen by 18.4% since 2019 as a result of high demand.
– San Diego secured a sizeable share of venture capital (VC) funding with more than $796 million invested in area biotech and pharma companies in Q2 2020, the highest ever for the region.
– San Diego also reported a 17% increase in demand for space from life science companies, the equivalent of 500,000 square feet of space, since March of 2020.
CBRE’s Zack Holderman says, “While COVID-19 has presented significant challenges in the United States, the San Diego life sciences industry has shown its resiliency and strength through its commitment to health and research. San Diego will show resilience and expansion, affording tenants, owners and developers ample runway to grow the life science market.”
For comments, questions or concerns, please contact Dennis Kaiser
*Pictured CBRE’s Ryan Egli


