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California  + San Diego  + Office  | 

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

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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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