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Office Projects Converted to LS Facilities Amid Low Supply, High Demand
While the significant growth experienced by life sciences early in the pandemic has cooled, the Puget Sound region remains a strong area for the sector. According to Cushman & Wakefield’s recent report, over 150 life sciences companies are headquartered in the area, with the majority situated in the Lake Union and Bothell submarkets.
Due to low supply and high demand, newly delivered office projects are being converted into life sciences facilities, including Boren Labs, 330 Yale and Unison Elliot Bay. Lake Union features 3.2 million square feet of inventory, with vacancy at 12.1 percent and triple net rents in the $70-90 range.
Bothell comprises 2.1 million square feet of inventory, with vacancy at 10.3 percent and triple net rents in the low-to-mid $20s or in the $40-50 range for some high-end lab spaces. The overall vacancy rate for the region is 9.8 percent, with average asking rents equating to $60.91 per square foot.
