Tuesday, September 21, 2021

Tandem Diabetes Leases 181,949 Square Feet in San Diego at $62.18/Foot

 By David Gross

Tandem Diabetes, a manufacturer of insulin pumps, has leased 181,949 feet from Kilroy at 12400 High Bluff Drive, with a lease term that goes through 2035, and includes two five year expansion options.   In addition, Tandem has a ROFO (Right of First Offer) for another 34,569 square feet in the development.  

With some existing space expiring, the new lease will increase Tandem’s regional footprint to 360,000 feet in San Diego, making it the fourth largest tenant headquartered locally, after Illumina, Dexcom, and Sorrento Therapeutics.   

Once fully occupied, Tandem will be paying an initial base rent of $62.18 per Square Foot, consistent with recent leases in the San Diego area.  But since its acquisition of the Del Mar Corporate Center, Kilroy has been pushing the region’s life sciences cluster.  With the move to High Bluff Drive, Tandem will be pushing itself four miles north near Del Mar, a significant move away from the region’s life science industry holding a tight position around I-5 and I-805 in Torrey Pines and the Sorrento Valley.

Kilroy issued a press release noting that a total of 303,000 square feet had been leased in Del Mar, adding in new deals with Sorrento and DermTech.  Kilroy is planning to build another 600,000 feet in the area just north of the Ted Williams Freeway which it is branding “the 56 Corridor”.

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