Did you know that www.revistalab.com is tracking real estate transaction activity within the Life Science Real Estate Sector? We have trend data on transaction volumes, prices per square foot, and even cap rates starting in 2020 to present. When looking at volumes life science RE transaction volume was strong throughout 2020 to the middle part of 2023 but has begun cooling in the middle part of 2022.
Transaction activity reached a high point in 4Q21 when quarterly volume was $8.5B and annual volume reached $20.8B. Volumes were fairly level through 3Q22 but in 4Q22 just $1.4B was traded, according to RevistaLab. The cool down in transaction volume appears to have continued into 2023 with just $1.0B traded so far in 1Q23 (through 3/15/23).
The cooldown in volume follows many other real estate sectors and is no doubt related to the rise in interest rates that hit the US economy throughout 2022. This will be a metric to watch in 2023 and rest assured RevistaLab will be here to measure it.
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