JLL: Capital Markets Drive Change in San Diego
Jones Lang LaSalle said the market saw a decrease in availability for biotech real estate space as well as an increase in demand over the last two quarters of 2010.
May 13, 2011
By Allison Landa, News Editor
Courtesy Flickr Creative Commons user robsettantasei
In a research report, Jones Lang LaSalle says that shifts in the capital markets are poised to influence the growth rate of biotechnology firms as well as the landscape of related real estate ownership in San Diego this year.
The firm found that employment levels in San Diego’s biotechnology sector were steady through 2010, with positive growth expected this year. With $67 million in federal grants awarded to 184 biotech firms last year, JLL asserts that this year looks to be one of continued growth, with the industry outperforming the general markets.
How does this translate to real estate? According to JLL, the San Diego market saw a decrease in availability for biotech real estate space as well as an increase in demand over the last two quarters of 2010. According to JLL senior research analyst Eli Gilbert, the San Diego region has evolved into a major life science hub in the U.S. and demand for related properties continues unabated.
In 2010, the JLL team completed more than 1.4 million square feet in lease transactions, directing $34.5 million in project management and leasing and/or managing more than 5.5 million square feet.
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