Every quarter San Diego Regional EDC analyzes key economic indicators that are important to understanding the regional economy and the region’s standing relative to the 25 most populous metropolitan areas in the U.S.
EDC explains San Diego’s Q3 2021 economic data:
Key Findings from Q3 2021:
- VENTURE CAPITAL: Life Sciences and Tech companies continue to shine. San Diego experienced another phenomenal quarter for VC, reaching $1.9 billion, an increase of $52 million compared to Q2, and $1.1 billion more than the same quarter last year. Life Sciences companies attracted almost $1 billion via 23 deals, with Genomatica pulling in $118 million alone. Twenty Tech companies brought in more than $940 million, with Shield AI and Wiliot attracting $410 million combined.
- COMMERCIAL REAL ESTATE: Demand for office and industrial space continues to climb. For the second quarter in a row, San Diego showed positive net absorption of office real estate, pushing vacancy rates down and rents up. The delivery of Amazon’s 3.4 million square-foot warehouse in Otay Mesa led to net absorption of more than 4.7 million square feet of industrial space, the strongest quarter on record.
- EMPLOYMENT: San Diego continues to ride the wave of employment gains. Total nonfarm employment increased by 6,200 during Q3 and is up 51,300 compared to a year ago. However, gains were choppy across industries. Leisure and Hospitality led employment growth in Q3 with 7,900 jobs, as Accommodation and Food Services establishments continue to re-open and re-hire. Professional and Business services also had a positive quarter, adding 3,200 jobs to the region as venture funding fuels growth.