Benzinga | Sep 20, 2021 04:11PM EDT

Kilroy Realty Reports 3 New Leases Totaling 330K Square Feet With Publicly-Traded Lice Science, Biotech Companies In San Diego

Kilroy Realty Corporation (NYSE:KRC, &quot, Kilroy&quot, ))) today announced three new leases totaling 330,000 square feet with publicly traded life science and biotech companies in San Diego. Tandem Diabetes Care (~182,000 square feet), DermTech (~96,000 square feet), and Sorrento Therapeutics (~52,000 square feet) lease transactions involve the redevelopment of commercial office space into three state-of-the-art life science/lab facilities and support Kilroy's significant investment in broadening its life science portfolio.

Kilroy also plans for a ~600,000 square foot project (Santa Fe Summit) with tech office/life science flexibility on the 56 Corridor to meet the growing demand for space among life science companies in San Diego.

"We are thrilled to welcome these high-caliber companies to our portfolio," said Nelson Ackerly, senior vice president of Kilroy. "Our new partnerships are a testament to the quality and flexibility of our properties in the context of their life after initial tenancy. We invest in assets within desirable locations that can support a variety of uses."

Strength of the Life Science Market in San Diego

As a top-three life science market in the United States, the race among biotech and life science firms to secure quality real estate in San Diego is booming from traditionally concentrated clusters into other well-established, highly sought-after areas.

"Vacancy rates in Torrey Pines and University Town Center (UTC) are less than 2% and 0.5% respectively, and rents are at all-time highs, up over 20% year-over-year," said Nelson Ackerly. "With this record demand for state-of-the-art research and development space, life science companies have firmly set their sights on Del Mar Heights and the 56-Corridor."