Life Sciences 2020: The Future is Here

MARKET SUMMARY

19.6 MSF MARKET SQUARE FOOTAGE FAST LAB STATS AVERAGE RENT (PER SF) $47.28 16K TOTAL EMPLOYEES +82% TOTAL EMPLOYEES

• The nucleus of the San Diego life sciences market lies in Torrey Pines, surrounding University of California San Diego, and drawing its talent pool from the new graduates. • The abundance of talent, high quality of life of Southern California and strong anchors such as Illumina and Scripps Research help foster growth in the region. • As the market continues growing, landlords have expanded eastward towards Sorrento Mesa, converting older buildings into new lab space. Over the last four years, 37% of the 2.8 million sf in new inventory has been a result of conversions. • Torrey Pines commands the highest rents in the life sciences sector and continues to attract companies like Pacira Pharmaceuticals who recently leased approximately 90,000 sf at 10410 Science Center Drive. • Amenitized projects continue to achieve the most success in terms of rental rates and leasing velocity due to tenants utilizing their real estate as an important recruiting and retention tool. • The San Diego life sciences region has currently experienced five straight years of positive net absorption and all submarkets have surpassed or are approaching all-time high asking rates.

SINCE 2010 7.9% VACANCY

SAN DIEGO

TOP LIFE SCIENCES COMPANIES

LIFE SCIENCES TALENT POOL: 14,934

10,500 11,500 12,500 13,500 14,500 15,500

COMPANY

TYPE

Illumina

Genomics

Scripps Research

Non-Profit

Pfizer

Big Pharma

Celgene

Big Pharma

Number of Persons 7,500 8,500 9,500

Average Annual Growth Rate 2001-2018: 3.5%

Lilly

Big Pharma

Dexcom

Med Device

Vertex

Biotech

2001

2003

2005

2007

2009

2011

2013

2015

2017

2019

Source: EMSI

Takeda

Big Pharma

INVENTORY/GROWTH PROJECTION Currently just over 560,000 sf is under construction, with another 3,565,000 proposed.

Quidel

Diagnostics

Hologic

Diagnostics

TOP NIH-FUNDED INSTITUTIONS, 2014-2018

UNIVERSITY OF CALIFORNIA, SAN DIEGO $2B

SCRIPPS RESEARCH INSTITUTE $927M

STANFORD BURNHAM MEDICAL RESEARCH INSTITUTE $279M

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