The two-story R&D/light manufacturing building resides in Campus Point, between the University Town Center (UTC) and Torrey Pines areas of San Diego. San Diego County's industrial market has recently experienced a slump in demand, as the start of 2007 brought about the first quarter of negative net absorption that the county has seen in three years. This decrease, which studies say is partially due to an increase in newly constructed buildings, has not been significantly felt in Torrey Pines, however.

The biotech hub, which has fared well, has influenced companies such as San Diego-based Veralliance to invest in surrounding-area properties. The 424,345-sf building is currently only 42% leased to one tenant, Kyocera Wireless Corp., who recently scaled back its spatial demands due to offshore manufacturing, says Bret E. Gossett, a principal in Veralliance.

Despite the decrease in occupancy, Veralliance has high hopes for the center, which it acquired from Qualcomm Inc. for $170 per sf. Gossett tells GlobeSt.com that Veralliance is happy with the building's position and close proximity to Torrey Pines – a high-demand market, which seems to be immune to the county-wide industrial slowdown, where new developments face large barriers to entry.