The cap rates for life science real estate deals have been increasing after reaching a low point in the fourth quarter of 2021. The compression down to 4.2 coincided with a peak in transaction volume of almost 20 billion dollars on an annual basis. After 4Q21, investor activity slowly cooled, and the highly competitive pricing started to let up. Cap rates scooted upwards, and we are now seeing less transactions. Cap rates are hovering around 5.1 and on average have remained the same since the end of 2022.
If you are interested in learning more about current life science real estate trends, click here for more information and please schedule a demo with us.
