JLL Says Capital Markets Make Waves in San Diego

JLL said that 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.

A recently released report by commercial real estate services firm Jones Lang LaSalle Inc. asserts that the capital markets are showing themselves to be major change drivers in the bustling life-sciences industry in San Diego – consequently forcing shifts in the industry’s real estate.

“In review, the San Diego life sciences industry in 2010 was a blend of positive and negative that produced a mixed bag of results,” the report reads. “Venture capital investment, the life-blood of the region’s life sciences industry, began 2010 coming off of a strong fourth quarter of 2009, which saw $178 million invested into local industry.”

However, the report asserts, that does not mean the surge lasted into the first quarter of 2010, which posted an investment amount of only $81 million.

“Overall,” it reads, “2010 produced relatively lackluster investment activity.”

Jones Lang LaSalle said that 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 senior research analyst Eli Gilbert, the San Diego region has evolved into a major U.S. life science hub, and demand for related properties continues unabated.

But what will happen should the shifting tides of the capital markets wash out the industry? That’s not to say it will definitely happen – just that that brand of destruction is certainly a possibility. That’s when scientists will begin paying particular attention to real estate.