San Diego Lab Space: Empty Buildings, New Moves

San Diego’s science labs are mostly empty. About a third of the space sits unused, which is almost as high as it has ever been. The city’s rental rates are dropping and landlords offer more discounts, so some companies are stepping in. The latest data shows a split scene. Venture money is coming back, and investors feel hopeful again. Yet the total amount of space leased this quarter is half what it was a year earlier. Analysts say the real estate market is still recovering. Some big biotech firms are moving into new, high‑quality buildings. They prefer places like Torrey Pines and Del Mar Heights. These moves signal that the industry is shifting from saving money to investing in better facilities and growth.International firms are also arriving. A Beijing company will open a new office near Qualcomm, while a Taiwanese firm has built a 30‑million‑dollar factory in Sorrento Valley. These arrivals show that San Diego’s talent and cheap premium space are attractive worldwide. Still, the overall picture is bleak. Leasing activity fell sharply in the first quarter, with only 223, 000 square feet signed compared to averages of 450, 000 and 580, 000 in past years. Most empty labs are downtown, where only ten percent of space is used. Many new buildings from the 2021‑22 boom are still vacant, showing a mismatch between supply and demand.