After several tough years marked by oversupply and slower demand, life science real estate has been searching for a bottom. Most major markets — from Boston to San Francisco and San Diego — continued to see occupancy declines in 3Q.
But there may be early signs of stabilization in some of the emerging clusters. One such area is the DC–Baltimore region. This market may not have been top-of-mind as a recovery leader given its proximity to government institutions and the political uncertainty that surrounds them. Yet, in 3Q, occupancy rose 80 bps to 81.5%, bucking the national trend. With a small, fully leased construction pipeline, DC–Baltimore is well-positioned to continue to absorb existing vacancies.
Of the largest clusters, New York and Denver-Boulder also saw occupancy increases in 3Q and positive net absorption. Follow this and other insights and quarterly trends with RevistaLab!
