Figure

San Diego Life Sciences Market Overview Q1 2023

May 1, 2023 10 Minute Read

Looking for a PDF of this content?

Download

Laboratory Inventory & Availability

  • As of Q1 2023, San Diego’s total lab exclusive inventory totaled 24.2 million sq. ft., with 1.5M sq. ft. in demand.

  • Vacancy increased from last quarter to 5.6% across the entire market, as Core Market vacancy increased from a record low of 2.7% in Q1 to 5.5% in Q1 2023.
Rental Rates Remain Stable While Leasing Activity Slows

  • Asking rents across the market have increased substantially over the last decade+, as Central San Diego now sits at $6.46 NNN, just below the Q3 record high of $6.57 NNN.

  • Countywide, leasing activity slowed from 134,873 SF in Q4 to 116,864 SF in Q1. Central San Diego logged just under 70,000 SF of leasing activity for the quarter, the lowest single quarter in a long while. Economic uncertainty has cause tenant activity to slow dramatically

 

Demand Activity Returns to Historic Norms

  • Demand for lab space had been scarce over the second half of 2022, as total demand fell below 1M sf; however, the addition of a couple sizable big pharma requirements has taken Q1 demand to ~1.5M SF.