Many metros are struggling this year to absorb new Life Science inventory as funding has significantly scaled back and companies become more cautious on space needs. After struggling to absorb new inventory in 2021 and 2022, which saw increases of 2.7 million SF and 1.6 million SF respectively, the San Francisco/San Jose market seems to be showing some resilience in 2023. So far this year, 2.2 MSF has been delivered and 2.1 MSF has been absorbed stabilizing occupancy at 92.1%. This is in contrast to some of the other large markets like Boston and San Diego that are currently seeing steeper occupancy declines. Still, the pipeline of life science construction currently under way across the bay area is 14.5 MSF, or 30% of total existing inventory. This is all scheduled to hit the market between now and 2025, which is more than double what has been delivered since 2021. Only about a quarter of this new supply coming has been preleased so there will be a lot to absorb in order to prevent deterioration in occupancy. Join us on our Life Science Real Estate Market Update on Nov. 7th to learn more about this market and other markets of interest.
Source and Copyright: Revista. Data believed to be accurate but not guaranteed and is subject to future revision. Use of this data is permitted subject to terms and conditions detailed on revistalab.com/terms-of-use and with proper credit to Revista or Revistalab.com.
