Kilroy signs three new leases totalling 330,000 sq ft off office-to-life-science redevelopments in San Diego
Kilroy Realty Corporation (Kilroy) has signed three new leases totalling 330,000 square feet with publicly traded life science and biotech companies in San Diego.
Tandem Diabetes Care (~182,000 sq ft), DermTech (~96,000 sq ft), and Sorrento Therapeutics (~52,000 sq ft) lease transactions involve the redevelopment of commercial office space into three state-of-the-art life science/lab facilities and support Kilroy's significant investment in broadening its life science portfolio.
Kilroy also plans for a ~600,000 sq ft project (Santa Fe Summit) with tech office/life science flexibility on the 56 Corridor to meet the growing demand for space among life science companies in San Diego.
"We are thrilled to welcome these high-caliber companies to our portfolio," says Nelson Ackerly, senior vice president of Kilroy. "Our new partnerships are a testament to the quality and flexibility of our properties in the context of their life after initial tenancy. We invest in assets within desirable locations that can support a variety of uses."
As a top-three life science market in the United States, the race among biotech and life science firms to secure quality real estate in San Diego is booming from traditionally concentrated clusters into other well-established, highly sought-after areas.
"Vacancy rates in Torrey Pines and University Town Center (UTC) are less than 2 per cent and 0.5 per cent respectively, and rents are at all-time highs, up over 20 per cent year-over-year," says Nelson Ackerly. "With this record demand for state-of-the-art research and development space, life science companies have firmly set their sights on Del Mar Heights and the 56-Corridor."