Lab Spaces in San Diego

San Diego has long been a prominent hub for life sciences, boasting a substantial inventory of laboratory and research and development (R&D) spaces. As of the third quarter of 2024, the Central San Diego laboratory market experienced 352,928 square feet of negative net absorption, primarily due to significant vacancies in areas like Sorrento Mesa. This marks a shift after three consecutive quarters of positive net absorption, bringing the year-to-date figure to negative 159,022 square feet. Despite these challenges, leasing activity has shown resilience. In 2024, over 1 million square feet of leasing activity were recorded, nearly doubling the total for 2023. This uptick indicates sustained interest in San Diego’s lab spaces, even amid market fluctuations. The market has also seen a rise in vacancy rates, with the overall life sciences vacancy reaching 18.3% at the end of Q3 2024, up 210 basis points from the previous quarter and 850 basis points year-over-year. In terms of new developments, Alexandria Real Estate and Eli Lilly have collaborated to introduce Gateway Labs, a 62,000-square-foot co-working lab facility in San Diego, slated to launch in the first half of 2024. Regarding corporate relocations, while some companies have moved their headquarters out of California in recent years, San Diego continues to attract businesses seeking to leverage its robust life sciences ecosystem. For instance, Teradata, a data analytics company, relocated its headquarters to San Diego from Dayton, Ohio, to tap into the region’s talent pool and innovation-driven environment. Overall, San Diego’s lab space market is navigating a period of adjustment, with fluctuations in absorption and vacancy rates. However, ongoing leasing activities and new developments underscore the region’s enduring appeal as a center for life sciences and innovation.

Key Benefits

•  Access to top research institutions and talent
•  Proximity to major highways and transportation hubs
•  Industrial and lab spaces for R&D and manufacturing
•  Infrastructure and transportation links
•  Affordable options for life sciences companies

Typical Lab Space

•  Medical device manufacturing
•  Clinical trial centers
•  Diagnostic labs

Prominent Companies

•  Illumina (genomics company)
•  BD Biosciences (medical technology company)
•  Thermo Fisher Scientific (life sciences company)

Lab Space Availability

•  4,400,000 sqft

Transportation

•  Easy access to major highways, including I-5, I-8, and I-805
•  Proximity to the San Diego International Airport
•  Quality public transportation options, including bus and train services, contributing to the overall quality of the area.