The San Diego life science market had a record year. The market sector recorded 34% rent growth and more than 1 million square feet of leasing activity in both the third and fourth quarter, according to the fourth quarter report from JLL. In 2021, there were 139 life science leases completed in the San Diego market, representing a total of four million square feet, a 51% increase in transactions and an 80% increase in square footage from 2020.

In the fourth quarter, life science leasing activity totaled 1.2 million square feet in 33 leases and representing nearly 75,000 square feet of absorption. It was the second consecutive quarter where leasing activity surpasses 1 million square feet. While leasing activity was down a nominal 3% quarter-over-quarter, it was up a staggering 155% year-over-year.

The leasing activity pushed the vacancy rate down to 3.1%, a record low for the market and a 40 basis point decrease from the third quarter and a 240 basis point decline from the same time last year. Direct availability is 2.4% while sublease availability ended the quarter at 0.7%.