JLL Buys Gilliland Construction Management

Gilliland Group. Photo courtesy of JLL

JLL continues to grow its capabilities in Southern California. After launching a life science property management division last month, it has now expanded its Southwest Project and Development Services unit with the acquisition of construction management firm Gilliland Construction Management, based in San Diego.

Gilliland Construction comprises eight people, working in San Diego for Southern California clients. The firm provides project management and construction management services for life science, lab, retail, hospitality, industrial, multifamily and office properties, as well as tenant coordination and entitlement for new construction, renovations and value-add opportunities across multiple industries.

Its owner & founder, Kirt Gilliland, has been appointed senior vice president of JLL Project and Development Services, and will oversee operations across the metro.

According to a prepared statement by Peter Belisle, market director for JLL’s Southwest Region, the company’s focus on expanding its project and development services platform has been a priority for the firm over the past several months. In San Diego, opportunities include new development, redevelopment and expansion across several property types, from life science to multifamily assets.

A valuable market

2021 Life Sciences Cluster Rankings. Chart courtesy of JLL

San Diego remains a hotbed for commercial real estate activity. Downtown, JLL was recently hired to oversee leasing at a $400 million mixed-use property, set to include 270,000 square feet of office space, along with retail and luxury housing. The 37-story tower is developed by Lowe, Holland Partner Group and North America Sekisui House.

According to CommercialEdge data, San Diego’s office vacancy stood at 13.7 percent as of January, 20 basis points higher than Los Angeles’ rate, and 200 basis points below the national average of 15.7 percent. Developers’ confidence in the market is highlighted by just under 4 million square feet of new office space under construction—the figure represents 4.2 percent of total stock, 200 basis points above the national rate of development as of January.

In its 2021 life science real estate analysis, JLL ranked San Diego as the third most important cluster in the nation, surpassed only by the San Francisco Bay Area and Boston. Competitive investment activity in primary markets has bolstered development in adjacent areas as well, the report showed.

Recently announced projects in San Diego include Torrey View, an upcoming 220,000-square-foot facility developed by Breakthrough Properties, which landed a full-building tenant in November last year.