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California  + San Diego  | 

San Diego Life Sciences Sector Continues to Cool

San Diego’s once hot life sciences sector continued to decelerate in Q1 2017, with sluggish leasing activity, primarily as a result of questions surrounding the impact a new administration would have on the sector. Yet, according to research by JLL, venture capital funding increased 26% from Q4 2016, and M&A activity is expected to accelerate as industry and political forces converge.

Other key Q1 findings include:

  • Region secured more than $56 billion in M&A activity since 2011
  • A total of 17 transactions were completed Q1, a 15% drop from Q4 2016, and no deal larger than 30,000 square feet was recorded
  • 223,282 square feet of total leases signed, a 58% drop from Q4 2016
  • Just 24% of leases signed during Q1 occurred in Class A space, down from quarterly average of 50%
  • Renewals accounted for 41% of total Q1 deals, well above trailing three-year average of 21%
  • Just 32,692 square feet of positive net occupancy growth was recorded, well under average of 193,000 square feet

For comments, questions or concerns, please contact Dennis Kaiser

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About Dennis Kaiser

Dennis Kaiser is Vice President of Public Relations and Communications for Connect Creative. Dennis is a communications leader with more than 40 years of experience including as a journalist and in corporate and agency marketing communications roles. He is responsible for Connect Creative’s agency client services and is involved in a range of initiatives ranging from public relations and content strategy, communications and message development, copywriting, media relations, social media and content marketing services. Prior to joining Connect Media in 2015, his most recent corporate communications roles involved leading a regional public relations effort across Southern California for CBRE, playing a key marketing role on JLL’s national retail team, and directing the global public relations effort at ValleyCrest (BrightView), the nation’s largest commercial landscape services company. He has worked on marketing communications assignments for such CRE companies as Blackstone/Equity Office, Carlyle, Caruso, Disney Resorts, GE Capital, Irvine Company, Hines, Howard Hughes Corp., Jeffries, Lennar, MGM, Marcus & Millichap, Prologis, Raleigh Studios, Simon, Starwood, Trammell Crow Company, Transamerica, UBS and Wynn Resorts. Dennis has also worked on communications and launch strategies for a number of consumer electronic, media and tech brands including SlingMedia, Channel Master, Deluxe Media Entertainment, BeIn Sports, EchoStar and Sprint. Dennis’s agency background included firms such as Off Madison Ave., Idea Hall and Macy + Associates. He has earned an outstanding reputation with organization leaders as a trusted advisor, strategic program implementer, consensus builder and exceptional collaborator. Dennis has developed and managed national communications programs for Fortune 500 companies to start-ups, both public and private. He’s successfully worked with journalists across the globe representing clients involved in major-breaking news stories, product launches, media tours, and company news announcements. Dennis has been involved in a host of charitable and community organizations including the American Cancer Society, Easter Seals, Boy Scouts, Chrysalis Foundation, Freedom For Life, HOLA, L.A.’s BEST, Reach Out and Read, Super Bowl Host Committee, and the Thunderbirds Charities.

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