CBRE: Bay Area Life Science Lab Space Remains in High Demand
A new second quarter report from CBRE indicates that the San Francisco Bay Area has the highest demand in the country for life science lab space. The 4.4 million square feet of demand is slightly more than Boston’s 4.2 million, with Bay Area average rents now standing at $67.72 per square foot, well above the 12-market, life sciences hubs average of $54.77.
“With rising costs of construction and inflation, we’re seeing increased competition for existing lab space, as well as developers delivering warm shells as tenants pursue cost-effective strategies,” said CBRE Vice Chairman Dino Perazzo.
Developers are looking to boost supply in the region as new development and conversions in process totaled 7.1 million square feet in Q2, much of which is pre-leased. Most of the development and conversion activity is in San Francisco, Oakland and the Peninsula, while Silicon Valley is seeing some office and R&D facilities earmarked for future life science development.
Mark comes to ConnectCRE with an extensive background as a business and news reporter in San Francisco radio, as well as 35 years as a traffic reporter on several stations including KGO, KNBR, KCBS and KFRC. As a business reporter, Mark covered the tech world in Silicon Valley where he became familiar with real estate transactions in the hot Bay Area marketplace. He attended San Jose State University with a BA in Radio and TV Broadcasting and currently resides in the Lake Tahoe area where he gets to frequently enjoy all of his favorite activities: Golfing, Fishing, Hiking and Skiing.
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