San Diego Life Science Companies Requiring Larger Lab and Office Footprints
Since early 2024, companies seeking office or lab space of 100,000 square feet or greater have tripled.
Companies over the past couple of years have been seeking larger requirements for lab and office space.
In fact, since Q1 2024, the number of companies seeking office or lab space of 100,000 square feet or greater in San Diego County has tripled, according to a report from JLL.
This is noteworthy for a market with an average footprint size of 12,693 square feet; despite tenants downsizing and consolidating, innovation companies are slowly returning to growth mode.
Now the pace is a little slower so far in 2026. Only five leases have been signed over 100,000 square feet in the market, with only one of them being a new lease. That's down from 2025, which saw nine total leases signed in this segment during the full year.
Currently, there are 30 existing options countywide over 100,000 square feet for lab and office space, which continues to make this a tenant-favorable market. Owners may need to consider demising large blocks to accommodate smaller-footprint demand.
Despite this oversupply of large-block options relative to demand, the development pipeline is currently in a lull as newer supply gets absorbed.
Richard Gonor, managing director of JLL, told GlobeSt.com that overall San Diego's life science market is showing clear green shoots, even though signed leases in that segment are still slow.
“This large-block paradox signals that innovation companies are shifting from downsizing to scaling, driven by the need to be near talent and clustered within San Diego's established life sciences and tech ecosystems,” Gonor said.
Yet location alone no longer wins deals; building quality and amenities are also deciding factors as companies compete for new talent and to bring employees back into the office, he said.
“This has created a bifurcated market, with large-block demand concentrated in UTC/Eastgate, Torrey Pines and Del Mar Heights, leaving 30 existing large-block options countywide still available, according to Gonor.
“As these premier submarkets tighten, reemerging submarkets such as Sorrento Mesa, Rancho Bernardo, and Kearny Mesa are well-positioned to absorb the next wave of growth, positioning San Diego as a premier innovation hub.”
In fact, since Q1 2024, the number of companies seeking office or lab space of 100,000 square feet or greater in San Diego County has tripled, according to a report from JLL.
This is noteworthy for a market with an average footprint size of 12,693 square feet; despite tenants downsizing and consolidating, innovation companies are slowly returning to growth mode.
Now the pace is a little slower so far in 2026. Only five leases have been signed over 100,000 square feet in the market, with only one of them being a new lease. That's down from 2025, which saw nine total leases signed in this segment during the full year.
Currently, there are 30 existing options countywide over 100,000 square feet for lab and office space, which continues to make this a tenant-favorable market. Owners may need to consider demising large blocks to accommodate smaller-footprint demand.
Despite this oversupply of large-block options relative to demand, the development pipeline is currently in a lull as newer supply gets absorbed.
Richard Gonor, managing director of JLL, told GlobeSt.com that overall San Diego's life science market is showing clear green shoots, even though signed leases in that segment are still slow.
“This large-block paradox signals that innovation companies are shifting from downsizing to scaling, driven by the need to be near talent and clustered within San Diego's established life sciences and tech ecosystems,” Gonor said.
Yet location alone no longer wins deals; building quality and amenities are also deciding factors as companies compete for new talent and to bring employees back into the office, he said.
“This has created a bifurcated market, with large-block demand concentrated in UTC/Eastgate, Torrey Pines and Del Mar Heights, leaving 30 existing large-block options countywide still available, according to Gonor.
“As these premier submarkets tighten, reemerging submarkets such as Sorrento Mesa, Rancho Bernardo, and Kearny Mesa are well-positioned to absorb the next wave of growth, positioning San Diego as a premier innovation hub.”
Source: GlobeSt/ALM