Focus
San Diego lab space is almost impossible to find
Commercial Observer – May 26
According to JLL’s report for the first quarter of 2022, San Diego has less than 200,000 square feet of vacant lab space available, which makes up less than 1% of the total supply. This year brought a third straight record high in first-quarter lab leasing with 32 tenants signing for 1.8 million square feet of lab space, a 24% increase from the previous quarter and a 120% increase year over year.
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News
Office-to-lab conversions taking off in Seattle
Connect CRE – May 27
Demand for life sciences space has jumped in recent years, creating challenges to meet the need, as lab vacancy rates in many top markets are less than 4%. Puget Sound owners and developers are working to meet the demand. Greater Seattle has two office-to-lab conversions underway which constitute 405,000 square feet, or 43% of life sciences space under construction. In addition, a pair of new ground-up projects will add 537,000 square feet, with 2.4 million square feet of planned developments in the next two to four years.
Controversial plan brings Ph.D. students to biotech for training
Science – May 19
As life science Ph.D. holders in the United States increasingly find postgraduation employment at for-profit companies, more and more institutions are offering internship programs. Now, University of California, San Francisco is going a step further, allowing students to spend the bulk of their Ph.D. training at a Silicon Valley biotech startup, Altos Labs. Some see the program as an exciting opportunity for students, while others worry that students won’t get a true graduate school experience and could suffer from limits to their academic freedom.
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Deals
Former Dropbox HQ in Mission Bay turned into 750K SF of life sciences lab space
The Real Deal – May 18
The former Dropbox headquarters in San Francisco’s Mission Bay has been rebranded as Icona: Labs at Mission Bay. The 750,000-square-foot office complex at 1800 Owens St. in Mission Bay made the change as it seeks a new base of life sciences tenants, the San Francisco Business Times reported. KKR and Longfellow Real Estate Partners bought the complex last year from Kilroy Realty Corp. for $1.08 billion, marking the second-highest price paid for a single property in the city’s history.
Britain's Legal & General joins up with Ancora for U.S. life sciences real estate venture
Reuters – May 25
British insurer Legal & General has formed a 50:50 partnership with U.S. developer Ancora to invest in U.S. life sciences and technology real estate in the first U.S. investment by its alternative assets arm. The COVID-19 pandemic has spurred interest in real estate in life sciences, which spans sectors such as biomedical devices and pharmaceuticals.
Bay Area firm lands $75M to acquire, revamp life science campus
Commercial Property Executive – May 19
Four Corners Properties and their institutional equity partner have received $75 million in financing for the acquisition and redevelopment of the 7-acre Shoreway Innovation Center in Belmont into a new life science campus. Preliminary plans call for the construction of two Class A life science buildings, totaling about 500,000 to 600,000 square feet, as well as a multi-story parking structure with about 1,500 stalls.
Trammell Crow, CBRE plan 116,000 SF Vista Sorrento Labs spec life sciences building in San Diego
REBusiness Online – May 11
Trammell Crow Co., in partnership with CBRE Investment Management on behalf of a separate account client, has unveiled plans to build Vista Sorrento Labs, a 116,000-square-foot speculative life sciences development in the Sorrento Mesa submarket of San Diego. The purpose-built life sciences building marks the first ground-up life sciences project in San Diego for both firms.
Life sciences project breaks ground at 777 Industrial in San Carlos
The San Mateo Daily Journal – May 27
Developers behind a four-story life science project at 777 Industrial Road in San Carlos broke ground in late May. The project is expected to significantly change the face of the city’s east side. Presidio Bay Ventures’ 147,000-square-foot life science building will replace an existing Honda dealership at 777 Industrial Road. Once complete, the site is expected to bring between 500 and 600 employees into the area.
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