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California  + San Diego  + Office  | 

Smaller Deals Drive San Diego’s Life Science Cluster

The life sciences sector continues to advance on national and global level, with notable growth achieved in key markets such as San Francisco, Boston and San Diego. A new report from JLL, shows the San Diego life science cluster experienced 13% year-over-year increase in rental rates. The average asking rental rate for Class A space is now at $4.44 NNN psf/month and Class B space is hovering at $3.95 NNN psf/month.

Leasing activity was highlighted by smaller firms with space needs under 17,000 square feet, with these smaller requirements accounting for 75% of the total number of signed leases. The San Diego cluster produced a total of 20 completed lease transactions during the third quarter. This deal volume was 20% higher than the quarterly average over the previous three years.

The strong activity from smaller tenants was a driving factor in the third quarter, producing only 202,008 square feet of total gross leasing – a 38% decrease from the prior quarter and 31% less than the third quarter of 2018.

One factor limiting growth in the sector is labor. Access to talent is proving more challenging in the leading life science markets, as companies are growing at a faster pace than the amount of available scientific talent.

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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