Life science remains well-positioned to continue as one of the most sought after and top performing niche sectors in real estate despite recent macroeconomic deceleration, as both tenant and investor demand for laboratory, incubator, and biomanufacturing (GMP) space improved significantly throughout the COVID-19 pandemic.
Key Takeaways
- Pricing for life science and R&D assets remains at a record high, hitting $564 per square foot in 1H22.
- Life science venture capital funding declined by 18.5% year-over-year to $20.8 billion in the first half of 2022.
- Mirroring the slowdown in venture capital funding, life science investment activity declined 33.6% to close 1H22 at $7.7 billion.
- The top ten owners of life science wet laboratory / R&D space total 116.7 million square feet, 70% of which is owned by public or private REITs.
- Boston, San Francisco, San Diego and Raleigh/Durham remain the top life science clusters in the United States and collectively comprise more than 93 million square feet of laboratory and MP space and have a future construction and renovation pipeline of 33.2 million square feet.
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