August 18, 2017
JLL’s recently released Q2 2017 San Diego Life Sciences Report revealed after a slow start to the year, the market experienced a healthy rebound in leasing activity. The three-month period recorded 24 completed transactions that accounted for 644,212 square feet of total gross leasing activity and produced 205,529 square feet of positive net occupancy growth.
Where leasing activity was most active during the quarter was among San Diego’s smaller biotech companies. There were a total of 16 deals completed with companies that had space needs under 17,000 square feet in size, which accounted for 67% of Q2 leasing activity.
Additional Q2 highlights:
- Looking forward, it’s expected that leasing activity among smaller companies will continue to be the most dynamic. There are currently more than 15 companies with space needs under 17,000 square feet that are actively engaging the market.
- Q2 leasing sent total availability rate to 9.9%, pushing it below the 10% mark for the first time since Q4 2014.
- Leasing activity is up 35% from Q1 2017, and 60% from Q2 2016.
- Inventory of life sciences buildings will likely grow during H2 2017, as local developers are currently evaluating options to reposition industrial and office buildings into lab space.
For comments, questions or concerns, please contact Dennis Kaiser