The life science real estate construction pipeline, which had been rising throughout 2022 is beginning to show signs of stabilization. Measured by square feet in progress (SF Inprogress), Revistalab calculates 75.3 million square feet (MSF) under construction as of 2Q23. This figure is down slightly from 75.6 MSF in 1Q23. Falling construction starts and rising completions are the reason the pipeline is stabilizing. The square feet started over the past 12 months (SF Started TTM Sum) came in at 38.8 MSF in 2Q23. This is down from a high of 47.6 MSF registered in 4Q22. At the same time, square feet completed over the past 12 months (SF Completed TTM Sum) was 17.8 MSF in 2Q23 which was materially higher than the 13.6 MSF observed one year earlier (2Q22).
Expect these trends to continue into 3Q22. The economic environment is not conducive to new construction which will hamper SF Started TTM and completion levels should remain fairly elevated given the over 75.3 MSF in progress in 3Q23.
Revistalab will make sure to track these metrics so stay tuned!