San Diego Life Sciences Market Overivew Q4 2025

Significant Market Impacts 

• 2025 leasing activity was slow through the first half, but the second half of the year improved significantly, bringing the 2025 total to nearly 1.14 million square feet. While this is 20% below the 10-year average, it falls in line with historical pre-COVID norms.

• Central San Diego availability and vacancy rates have risen dramatically over the past four years. Since Q3 2021, the market rates have increased from historic lows of 4.2% availability and 2.2% vacancy to near record highs of 27.5% availability and 22.4% vacancy.

• The majority of tour activity has come from requirements under 30,000 sf, which represents over 75% of the current requirements.

• Despite the large amount of available sublease space on the market, there were only 6 transactions in 2025, 5 of which were under 6,000 sf in size.

• We anticipate availability and vacancy rates will stabilize and gradually decline as funding conditions improve and tenant demand recovers. This is also supported by the lack of new supply expected in the market.