Life Sciences Hubs Make Gains in Leasing and Construction
Led by the Boston metro area, lab space across the 12 largest U.S. life sciences hubs made additional gains in the second quarter, including an increase in lease rates and a decrease in vacancy despite more construction activity, according to a new report from CBRE.
The average vacancy rate for U.S. life sciences space registered 5.2% in Q2, down from 5.3% a year earlier. Average asking rent rose 5.8% from Q1 to $54.77 per square foot.
Meanwhile, in-process construction increased to 31.3 million square feet in Q2, a quarterly gain of two million square feet.
“Few, if any, sectors are completely immune to economic cycles,” said Matt Gardner, CBRE’s Americas life sciences leader. “Even so, the life sciences sector is buttressed by more fundamental, long-term shifts than most industries, such as advances in science and technology, expanding uses for biotechnology and the long-term trend toward more individualized treatment.”
Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces.
Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications.
Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).