Life Science: Great Promise & Rapid Growth

18.9 MSF MARKET SQUARE FOOTAGE $34.20- $60.0O FAST LAB STATS AVERAGE RENT (PER SF)

MARKET SUMMARY

With almost 19 msf of lab inventory. San Diego County is the third- largest biotechnology hub in the country, behind Cambridge, MA and the San Francisco Bay area, The San Diego life science sector is performing at an all-time high which has resulted in the growth and expansion of the life science tenant base. Fundraising, IPOs, and M&A activity are at an all-time high. The NASDAQ biotechnology index has begun performing well again, which may result in new IPO activity. Numerous local life science companies are preparing to file. VC and angel money is still available for companies with good science. Big Pharma is playing a significant role in the growth and M&A activity of major biotechnology hubs. Big Pharma has billions of dollars to deploy in its search for future blockbusters, often resulting in the acquisition or funding of smaller, San Diego-based companies. San Diego’s biotechnology community has a legacy of building and maintaining a strong entrepreneurial base. With the rise in funding activity, repatriation IPOs and M&A, local entrepreneurs are being offered a good opportunity to grow and generate new companies as well as make successful exits. As a result, San Diego continues to be a global epicenter for innovation and R&D.

43,651 TOTAL EMPLOYEES 6.2% VACANCY

SAN DIEGO

TOP TEN LIFE SCIENCE EMPLOYERS (BY REVENUE)

COMPANY

TYPE

RENT VS. VACANCY COMPARISON

Illumina

Genomics

$29 $31 $33 $35 $37 $39 $41 $43 $45 $47 $49 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Asking Rent, $ PSF (NNN) Overall Vacancy Rate

TSRI

Non-Profit

10%

Pfizer

Pharmaceutical

8%

Celgene

Pharmaceutical

6%

Lilly

Pharmaceutical

Dexcom

Medical Devices

4%

Vertex

Biotechnology

2%

Takeda

Pharmaceutical

0%

Quidel

Diagnostics

Hologic

Diagnostics

TOP THREE NIH-FUNDED INSTITUTIONS

UNIVERSITY OF CALIFORNIA, SAN DIEGO $400M

LA JOLLA INSTITUTE FOR ALLERGY AND IMMUNOLOGY $30M

J. CRAIG VENTER INSTITUTE $8M

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