March 2025 Life Sciences Update

San Diego HUB MARKET

MARKETS CONTENTS

Market Summary

Public & Private Funding (2024)

Rent vs. Vacancy Comparison

Fast Lab Stats

• San Diego’s life sciences core, centered around UC San Diego and private research institutions like Scripps Research, the Salk Institute and the Sanford Burnham Prebys Medical Discovery Institute, is anchored in the coastal suburb of Torrey Pines. This area continues to strengthen its position as one of North America’s largest life sciences hubs. • Continued growth of the industry has been fueled by public, private and academic collaboration, a talented workforce, a high quality of life and strong anchors, such as Illumina, Pfizer, Bristol Myers Squibb, Eli Lilly and Company, and Novartis. • The region is home to nearly 2,100 life sciences companies, including more than 80 independent and university-affiliated research institutes. • The life sciences cluster generated $56.6 billion in total economic output in 2023, according to Biocom California. • At of the end of 2024, 3.4 msf were under construction countywide, with 42% preleased. New development has pushed overall vacancy to 20.4% and will continue to rise with an abundance of active construction in the pipeline. • As VC investment returns to pre-pandemic levels, high vacancy and an abundance of sublease availabilities remain on the market. Tenants will have an attractive choice in less expensive, move-in-ready space.

$ Raised (MM)

$75

20%

Company

Deal Type

Completed VC Round

24.8 MSF Market Square Footage $68.66 $ Per SF 20.4% Vacancy 50.1K Total Life Sciences Employment 21.5% Life Sciences Employment 10-Year Growth Rate

$70

18%

Mirador Therapeutics

Early Stage VC Mar 2024 1st Round $400.0

$65

16%

Avenzo Therapeutics

Early Stage VC Mar 2024 1st Round

$385.9

Vacancy Rate

$60

14%

Candid Therapeutics

Early Stage VC Aug 2024 1st Round $370.0

$55

12%

Element Biosciences

Later Stage VC Jul 2024 5th Round $277.0

$50

10%

Capstan Therapeutics

Early Stage VC Mar 2024 3rd Round $175.0

$45

8%

Artiva (NAS: ARTV)

IPO

Jul 2024

$167.0

$40

6%

$35

4%

Engrail Therapeutics

Early Stage VC Mar 2024 2nd Round $157.0

Average Asking Rent $/sf

$30

2%

Endeavor BioMedicines

Later Stage VC Apr 2024 3rd Round

$132.5

$25

0%

Alterome Therapeutics

Early Stage VC Apr 2024 3rd Round $132.0

2015 2017 2019 2021

2023

Asking Rents

Overall Vacancy

Sublease Vacancy

Mainstay Medical

Later Stage VC Feb 2024 6th Round

$127.8

Representative Investment Sale Transactions (2024)

Representative Life Sciences Companies

Life Sciences Labor: Average Monthly Job Postings and Hires

Address

Type

$ MM RBA SF

Date

Buyer

Lab

3020-3030 Callan Ridge Rd. (65% Interest)

$153.4

173,311

Feb 2024 Breakthrough Properties

Company

Type

1,400

Esplanade

Lab

$120.0

173,651

Dec 2024 King Street Properties

Illumina

HQ

16981 Via Tazon & 11501 Rancho Bernardo Rd.

Lab / Flex

$30.8

87,516

Jan 2024 Dollinger Properties

1,200

Scripps Research

HQ

11025-11035 Roselle St.

Lab

$9.5

40,129

Jan 2024 Phase 3 Real Estate Partners

1,000

Pfizer

Regional R&D Center

800

Representative Lease Transactions (2024)

BMS/Celgene

Regional R&D Center

Company

Address

Size (SF) New/Renewal

Type

Quarter

Landlord

600

Lilly

Regional R&D Center

Pfizer

11202-11208 El Camino Real

230,132 New

Lab

Q1

Breakthrough

400

Dexcom

HQ

Bayer

10075 Barnes Canyon Rd.

127,382 New

Lab

Q2

Alexandria

Vertex

Regional R&D Center

200

Avidity Biosciences

3020-3030 Callan Ridge Rd.

105,511 Sublease

Lab

Q2

BMS

Novartis

Regional R&D Center

0

Labcorp

3595 John Hopkins Ct.

82,500 Renewal

Lab

Q4

Healthpeak

2020 2021

2022

2023

2024

Quidel

HQ

Mirador Therapeutics

4902 Headquarters Pt.

66,569 New

Lab

Q3

Biosciences Properties

Hires Unique Postings

Hologic

Regional R&D Center

Cibus

6455 Nancy Ridge Dr.

53,423 Renewal

Lab

Q3

Healthpeak

Veracyte

6925 Lusk Blvd.

50,833 Renewal

Lab

Q4

Healthpeak

Top NIH-Funded Institutions (2020-2024 )

Bio Degree-Awarding Institutions, Metro Area

Annual Life Sciences Degree Completions

BlossomHill Therapeutics 10255 Science Center Dr.

46,353 New

Lab

Q2

BioMed Realty

Recludix Pharma

3010 Science Park Rd.

44,117 New

Lab

Q3

Alexandira

University of California San Diego California State University San Marcos

$2.8B University of California, San Diego $1.1B Scripps Research Institute

$342M Salk Institute for Biological Studies

2013 3,491 2023 5,362 Up 54%

•

Sanofi

11025 N. Torrey Pines Rd.

42,623 Renewal

Lab

Q4

Healthpeak

•

National University (California)

•

Research Contributors

San Diego State University

•

Jolanta Campion jolanta.campion@cushwake.com

Justin Balagtas justin.balagtas@cushwake.com

Sources: Cushman & Wakefield Research, CoStar, National Institutes of Health (NIH), Lightcast, Pitchbook, Biocom

Cushman & Wakefield

65