May 10, 2017 Comments Off on San Diego Life Sciences Sector Continues to Cool Views: 476 California News, 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

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