San Diego

Saturday, August 14, 2021

Artiva Biotherapeutics Takes 52,000 Square Feet in Sorrento Valley/San Diego

 By David Gross

With steep manufacturing requirements, Immuno-Oncology developers continue to take on large blocks of space for both R&D and production.  Nkarta recently took 88,000 square feet in South City for this purpose, while fellow CAR-NK supplier Senti Biosciences took 92,000 square feet across the Bay in Alameda.  Down the coast in the Sorrento Valley near San Diego, Artiva Biotherapeutics is taking 52,000 square feet at 5505 Morehouse Road, an Alexandria Real Estate property under redevelopment.

Lease rates are unknown at this time, but asking rents in the area are pushing into the low 60s, and Sorrento Therapeutics recently took over 100,000 square feet nearby at Healthpeak's Sorrento Gateway Project.  

Allogeneic cell therapies like Artiva's offer significant opportunities for real estate developers because they need significant amounts of space and lessees are often less price sensitive than creators of monoclonal antibodies or more mature biologics as there is less industry experience with scaling up these products. 

Friday, July 30, 2021

San Diego-based Kumquat Biosciences Signs Potential $2 Billion Deal with Lilly

By David Gross

Kumquat Biosciences, a developer of small molecule immuno-oncology drugs, has signed a deal with Eli Lilly worth up to $2 billion to develop therapeutic candidates for tumor specific therapies.  The San Diego-based company is headquartered at BioScience Properties' 10770 Wateridge Circle building in Sorrento Valley, just across I-805 from Lilly's San Diego Biotech Center.   They are also just down the street from Sorrento Therapeutics' Directors Drive facility, where that drug developer just renewed for over $60/square foot, one of the first leases to break that threshold in the San Diego market.  Anaptysbio is currently paying $51.91/square foot in the same building as Kumquat (after escalators) on a lease signed in May 2020.

Tuesday, July 27, 2021

San Diego Tops $60/Sq Ft - Sorrento Signs 15+ Year Lease

By David Gross

Yesterday I posted on DermTech's deal with Kilroy for $51/square foot in La Jolla.   But San Diego is emerging as one of the few markets that could support over $60/square foot with its rapidly growing life sciences sector.  Sorrento Therapeutics recently signed a deal to take a new property at Healthpeak's Sorrento Gateway project, with an initial base rent of $61.20 per square foot.

The deal gives Sorrento 163,000 square feet at the development and is signed with escalators for a long, 188 month, or nearly 16 year, term.   Sorrento already leases space across the street from the property at 4930 Directors Place, and is consolidating its leases to have the same 2037 end date.

With Class A Space in La Jolla and Torrey Pines becoming some of the most expensive in all of Southern California, will be interesting to see what happens to the efforts to bring life sciences companies to Downtown San Diego, where IQHQ is building its $1.7 billion RaDD (San Diego Research and Development District) on the urban waterfront. 

Monday, July 26, 2021

San Diego Tops $50/foot - DermTech Leases 76,000 Square Feet from Kilroy in La Jolla

 By David Gross

Melanoma test maker DermTech recently signed a lease for 76,000 feet at Kilroy's Del Mar Corporate Centre II development in San Diego, in a building constructed in 2002.  Located north of Torrey Pines along I-5, this area is in the upper reaches for life sciences companies and will include 30,000 feet of conversion from office to lab use.

Base rent begins at $51 per square foot for the four phase lease, rising to over $80 per square foot over the 10 1/2 year lease term.  Rents in this area have been hanging around the 40s, so a deal above $50 is notable for the very hot La Jolla/Torrey Pines market.  It's also higher than sublease rents around Mission Bay in San Francisco.

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