Did you know there are over 30 markets with at least 2 million square feet of life science space? We typically focus on the premier hubs, but let’s shift to the medium sized clusters that could become large markets in the future. The chart below shows the small-medium sized markets with the highest amount under construction relative to their inventory. Winston-Salem tops the list, primarily due to Innovation Quarter, a mixed-use campus which will include a million square feet of life science space. Second is Houston, with 5 new buildings in progress, totaling 1.4M sf and equivalent to 30% of inventory. Texas Medical Center (TMC) has provided a strong backbone for the emergence of a life science hub in Houston. Seattle is the largest in this group to have double digit construction vs inventory, sitting at 15.2%. In general, the smaller cluster projects are pre-leased at a higher percentage, so there should be less of a supply demand gap after delivery. It will be interesting to observe how the space in these markets perform compared to the top clusters, so we will keep you posted.
