Construction starts slowed in 2023 as funding levels came down and demand for Life Science space softened, but 2024 has begun with almost a complete halt in new construction activity. Less than 1 million square feet of Life Science space broke ground in the first quarter of the year, down from 6.2M square feet last quarter and highs in 2022 of over 13M square feet quarterly. The current construction pipeline is still quite high with just under 80M square feet in progress. While the industry works to absorb the significant amounts of inventory started in 2021 and 2022, this slowdown will eventually provide a moment for demand to catch up. Much of what has been started recently in 2023 and early this year has been largely preleased, unlike many of the projects previously that were built speculatively based on the unprecedented demand for space at the time. Follow this and other trends by subscribing to Revista!
