Life Science Demand Far Exceeds Supply in San Diego

San Diego

San Diego is one of the top life science hubs in the country, and the market dynamics position the market for long-term growth. Today, the market demand already far exceeds the current supply, and in the long run, the life science market is positioned for more growth. These dynamics have made medical office and life science retail a top asset class among investors.

“The demand for quality life sciences space has outstripped supply of existing space for the most part. Larger users of 40,000 square feet plus are having to look at options as far as 12-18 months out,” Ted Jacobs, executive managing director at Cushman & Wakefield, tells GlobeSt.com. “The demand for space is reflective of the demand for talent, and company leaders are focused more than ever on leasing quality space that helps recruit and retain valuable talent. The central markets of Torrey Pines and UTC have become unusually tight and the major lab developers are pushing hard into Sorrento Mesa and beyond to provide expansion options for life sciences demand. Rents and constructions costs have pushed up and put unusual pressure on occupancy costs.”