As funding in life sciences actual property slows a bit, CBRE offers a deep dive into which cities are seeing essentially the most curiosity from tenants proper now, and the way these statistics examine to the present market emptiness and quantity of pre-leased house below building.
Like different sectors of business actual property, biolab/life sciences house skilled some blowback from financial uncertainty and rising rates of interest final 12 months. For instance, the fourth quarter 2022 market report from business actual property providers agency CBRE notes that job development slowed within the life sciences sector as firms seemed to protect money readily available and that common emptiness on the nationwide stage rose by 60 foundation factors between the third and the fourth quarters, to five.7 %. In the meantime, 1.4 million sq. ft. of latest house was delivered to the market throughout simply the fourth quarter.
General, nonetheless, life sciences actual property continues to be seen as a sound guess on another business actual property sector. The trick is to select the particular properties you wish to spend money on correctly. Which means making an allowance for market dynamics and the quantity of demand these buildings are more likely to generate within the near- and long run.
To that finish, CBRE offers a deep dive into which cities are seeing essentially the most curiosity from life sciences tenants proper now, and the way these statistics examine to the present market emptiness and quantity of pre-leased house below building. Right here’s the breakdown of tenant demand dynamics within the 13 high life sciences markets within the nation.