The pandemic accelerated both tenant and institutional investor demand for life science real estate last year, from wet lab and incubator space to bio-manufacturing and R&D properties, according to a new report by Newmark. Low lab vacancy rates across life science markets reflect significant demand and limited supply of existing wet lab space.
More than 36 million square feet of new construction is expected to be delivered in the top 14 U.S. life science markets. As a result, institutional investors and landlords across the largest life science clusters are actively re-evaluating the highest and best use for portfolios, and considering converting properties to meet immediate this demand.
The concentration of life science investment volume as a percentage of total office volume reached a record high of 16.4 percent in 2020, more than double the 2019 figure. Average monthly pricing for U.S. life science investment sales has more than tripled from the May 2020 trough, reaching $627 per square foot in December, says Newmark.
Lisa Brown has more than 30 years of experience in corporate communications and marketing management with organizations including Grubb & Ellis, Marcus & Millichap and NAIOP.
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