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Life Sciences Real Estate Shows Signs of Normalizing After Rapid Growth
U.S. life sciences real estate showed signs of normalizing in this year’s third quarter after setting records in 2021, CBRE says in a new report. Nonetheless, market fundamentals surpass those from before the pandemic.
The average lab vacancy rate across the top 12 U.S. life sciences hubs increased to 5.3% in Q3, up 30 basis points from Q2. In comparison, vacancy in Q1 2020 before the pandemic was 5.2%.
Vacancies rose partly because developers completed 2.1 million square feet of space last quarter in the 12 markets, outpacing absorption of 363,047 square feet.
“We’re seeing a normalization of the market after multiple quarters of breakneck growth,” said Matt Gardner, CBRE Americas life sciences leader. “It’s important to keep in mind that the pandemic set a new floor for the life sciences industry. Funding remains at high levels, and job growth continues. Life sciences real estate is a valuable asset.”
- ◦Lease
- ◦Development
