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Demand Outpaces New Construction in Life Science Lab Space
Life-science lab space has emerged as a coveted sector of commercial real estate as hefty increases in funding and employment have fueled both demand and construction in leading U.S. life-science markets, CBRE says in a new report.
Companies actively seeking life-science real estate in the first quarter targeted a cumulative 19.3 million square feet of lab space in the top 12 U.S. life-science markets. This represents more than 12% of the total existing life sciences space across these markets.
U.S. lab space under construction totaled 18.9 million square feet as Q1 ended. Meanwhile, tight vacancy—averaging 5.6% —is causing lab rents to rise to record levels in Boston, the San Francisco Bay Area and San Diego.
“Construction of new labs, including conversions of regular offices to lab space, has ramped up significantly,” said Ian Anderson, CBRE’s Americas head of office research. “But demand has grown even faster.”
- ◦Lease
