Life Science real estate has been on a clip of fast expansion, fueled by the increased investor attention and heightened space demand the sector experienced in the wake of the pandemic. But what cluster areas have seen the most significant increases in inventory? Boston tops the list with inventory growing by almost a third since 3Q22. Several emerging markets have also posted remarkable growth—DC–Baltimore and Raleigh–Durham have each increased their inventory by roughly 27% and 26% respectively, adding millions of square feet.
This surge in supply, coupled with today’s environment of lower investor risk tolerance, has placed pressure on market fundamentals. Some areas have seen vacancy rates rise by more than 10 percentage points. As the construction pipeline cools and most new projects are pre-leased rather than speculative, the imbalance is expected to ease over time—ultimately leaving the sector significantly larger and more mature than before. Follow this and other trends with a subscription to RevistaLab!
