High-rise commercial buildings

Sub Markets

Property Sectors

Topics

California CRE News In Your Inbox.

Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.

New call-to-action
California  + San Diego  + Office  | 

Life Science Market Continues on Burgeoning Path, Despite Funding Drop

The latest research by JLL shows a dramatic drop in venture capital funding for San Diego’s life science market. The local sector received just $42 million in VC activity during the first quarter of 2019, a 90% drop from the fourth quarter of 2018 and an 88% decrease from Q1 2018.

The decrease comes on the heels of San Diego experiencing its strongest year ever in 2018, with the market averaging $494 million of VC investment per quarter. Those record investment levels produced sustained growth among companies of all size ranges.

The San Diego life science cluster generated 320,896 square feet of total leasing activity during Q1. This first quarter leasing activity is 9% higher than the first quarter average over the previous five years, pushing 2019 off to a healthy start. Leases signed during the quarter produced just 77,656 square feet of positive net occupancy growth, a sharp decrease from the same period in 2018. JLL points out the reduced growth was driven by a combination of multiple renewal transactions and two companies (Pathway Genomics and Regulus Therapuetics) that downsized operations – each decreasing their footprints by more than 30,000 square feet during the quarter.

Researchers at JLL say things appear to be turning around early in the second quarter. Poseida Therapeutics secured $142 million through a Series C round of financing in mid-April, and Vividion Therapeutics pulled in an $82 million Series B round during the last week of April.

For comments, questions or concerns, please contact Dennis Kaiser

Connect

Inside The Story

Connect With JLL San Diego Research

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.

New call-to-action
New call-to-action
New call-to-action