After leasing out two of its San Diego office buildings to life science tenants, Kilroy Realty has begun conversion projects to better suit the companies’ needs. According to a first quarter earnings report from Kilroy, the company began redevelopment projects at both 12400 High Bluff Drive in the Del Mar Heights neighborhood and 4690 Executive Drive in the University Towne Center submarket.
The two leases were announced by Kilroy in September of 2021. The Del Mar Heights property will be occupied by Tandem Diabetes, while the UTC asset will be home to Sorrento Therapeutics, a biotechnology company relocating from San Diego’s Sorrento Valley neighborhood.
The property at 12400 High Bluff Drive is part of the larger Del Mar Corporate Center campus, a three-building office campus totaling 350,000 square feet. Tandem Diabetes is taking the third building on the campus, also referred to as Del Mar Corporate Center III, which totals 182,000 square feet. The insulin delivery and diabetes technology company will use the building for a mix of lab and office space.
Sorrento Therapeutics is also leasing approximately 52,000 square feet of space at the UTC building. While Kilroy has yet to announce specific details about the redevelopment, construction is set to take place in two phases, with the first beginning in March and the second taking place in 2023.
As one of the leading life science markets in the nation, San Diego has seen a 20 percent growth in the sectors employment rate over the last five years. A recent life science report from JLL showed the sector also contributes approximately $33.6 billion to the local economy. With demand for life science space high, developers continue to roll out new product, adding more than 2.7 million square feet. There are also currently 363,000 square feet of life science developments under construction.