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NYC Lab Space Demand Has “Exploded”
Demand for new life sciences lab space has ramped up quickly amid an uptick in speculative construction in New York City as the industry rapidly expands amid a global race for new drug development, CBRE reported. Year-to-date life sciences leasing activity citywide through September has already surpassed the highest total achieved for any year.
“Demand for lab space has exploded in New York City,” said David Stockel of CBRE. “Even as construction has escalated, the growth in life science firms seeking space hasn’t let up one bit. And pre-built lab space ready for occupancy is virtually non-existent.”
The availability rate for occupancy-ready, pre-built lab space in New York City was at just 1.1% as of the third quarter, while in Manhattan it was at 0.0%. In Manhattan, the lab-exclusive average asking rent has climbed 6% since mid-year 2020 to $111.18 triple-net per square foot, according to CBRE.
- ◦Lease
- ◦Development
