It is no secret that inventory has been increasing lately in many life science real estate markets. Developers have been responding to increasing demand for new space during the past years, especially coming out of the COVID-19 pandemic era. The Boston CBSA has been ground zero for much of this increased supply activity. The graph below shows the current occupancy rate in the greater Boston CBSA along with quarterly completions and absorption of vacant space in the market. It says about 8 million square feet (SF) of lab space has been delivered to the market during the past 6 quarters. During this period, absorption has been strong at just over 6 million SF of lab space, but underneath the level of completions. As a result, the occupancy rate has fallen from 94.4% to 92.1% during this time period.
Note that this data includes both traditional wet lab buildings and GMP or manufacturing buildings. In addition, www.Revistalab.com maintains this data for submarkets in the top 3 CBSAs as well as trend information on secondary lab metros. For more information, please contact Hilda Martin.
Data Source: www.Revistalab.com