Life Sciences Boom in San Diego: Why More Medical Space Is Essential

Sand Diego is emerging as a hotbed for the life sciences industry, with rapid growth in funding, talent, and innovation. Over the past five years, venture capital funding for life sciences in the region has surged by a staggering 566%, far outpacing the national average of 345%. Alongside this, San Diego boasts the second-highest number of biological and biomedical sciences graduates in the nation, fueling its ascent in the field.

A Thriving Ecosystem for Life Sciences

According to a national report by CBRE, the San Diego-Orange County region ranks seventh in the country for research talent. The area produces 4.5% of all biological and biomedical sciences PhDs in the U.S., thanks to powerhouse institutions like UCLA, UC Irvine, and USC. This academic infrastructure is a key driver of talent supply, enabling the region to house the fifth-largest pool of life sciences researchers nationwide.

Industry leaders attribute much of the region’s success to its diversity and entrepreneurial spirit. “Particularly over the past five years, this region has had some phenomenal success stories in the startup space,” says Jeff Pion, vice chairman at CBRE. Visionaries like Arie Belldegrun and Patrick Soon-Shiong have attracted significant venture capital and talent, while the local university system bolsters the pipeline of innovation.

The Talent Advantage

One of the distinguishing factors of the San Diego life sciences market is its robust talent pool. However, this strength is also a challenge. Unlike compact hubs such as San Diego or the Bay Area, San Diego’s talent is dispersed across a wide geographic area, making infrastructure and investment more critical.

Despite these challenges, the region’s life sciences sector has grown rapidly. From 2015 to 2020, San Diego achieved the fifth-highest growth rate in life sciences researchers, positioning it as a major contender in the industry.

The Push for Infrastructure

With demand for medical space on the rise, San Diego is facing a critical need to expand its infrastructure. medical vacancy rates are tight nationwide, even with robust construction activity, and the life sciences sector’s unemployment rate is at a historic low — less than 1% as of April 2023.

“The quality and availability of labor are key considerations for any expanding industry,” notes Ian Anderson, CBRE’s head of life science and healthcare research. “Expanding life sciences companies can choose from dozens of U.S. markets depending on their labor and real estate needs.”

Beyond the Medical

The growth of life sciences isn’t limited to drug development. The industry is also expanding into personalized treatments, advanced materials, and even future foods, making San Diego a key player in addressing global challenges.

As the life sciences sector continues to flourish, San Diego has the potential to solidify its position as a leading hub — provided it invests in the necessary infrastructure and medical space to support this momentum. With venture capital flowing and talent thriving, the city is on the cusp of a breakthrough that could redefine its role in the global life sciences landscape.