CBRE releases 2023 U.S. Life Sciences Outlook

 

The CBRE released its 2023 U.S. Life Sciences Outlook that forecasts life sciences labs/R&D space will increase by 20% in the next two years.  The inventory of life sciences sites has increased by around 50% in the past five years.  Following record growth in 2020 and 2021, the growth of the life sciences industry returned to a normal pace. However, the demand for lab/R&D space remains above pre-pandemic levels.  Boston/Cambridge continues to be the hub for lab/R&D space and currently has 15.3 million sq.ft under construction, followed by San Francisco Bay Area with 9.3 million sq.ft.  The life sciences industry's vacancy rate was 5.7% in Q4 of 2022, with the Chicago region leading at 29.6%. It has less than 2 million sq.ft in inventory.  The report identified Atlanta, Dallas/Fort Worth, and Nashville as emerging life sciences hubs in terms of their size, institutions, talent, and rapid growth.