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SAN DIEGO—All of San Diego's lease transactions in the life-sciences category during Q1 were below 30,000 square feet, which hasn't happened since 13 quarters ago, JLL SVP Grant Schoneman tells GlobeSt.com. According to a recent report from the firm, during Q1, there were more renewal deals than average and a large decrease in class-A deals compared to the quarterly average.
The report also revealed that only 24% of leases signed during the first quarter were in class-A space, which is down significantly from the trailing three-year average where 50% of all leases signed were in class-A space. Total availability for the San Diego life-science cluster ended Q1 at 10.8%, a modest 10-basis-point decrease from the end of 2016.
Also, active tenant demand is anticipated to secure approximately 400,000-500,000 SF of positive net occupancy growth, producing what will likely be another rebound in the second quarter. Rental rates remain at 2016 levels, hovering around $4.00 per square foot per month triple net in Torrey Pines and at UTC/Campus Point. Venture-capital investments into healthcare are up on a national basis by 86%, but San Diego is up only 26%.
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
