Demand for new life sciences lab space is outpacing speculative construction in the top 12 U.S. life sciences hubs, as the industry rapidly expands amid a global race for new drug development, according to CBRE.
Life sciences companies collectively sought nearly 23.8 million square feet of new lab space across those 12 markets in third quarter 2021. That exceeds the amount of lab space under spec construction — meaning space being built without a tenant already signed — by nearly 2.8 million square feet. That gap has widened steadily since last year. Even as construction has ramped up considerably, growth in demand continues to outpace it.
“Life sciences labs quickly are becoming a highly sought-after property type for both tenants and investors,” said Ian Anderson, CBRE’s Americas head of office research. “This intense demand for lab space is the natural result of a global push for new medicines begetting strong funding and hiring in the life sciences sect