Life sciences segment continues strong performance
The life sciences sector is holding strong, despite recent macroeconomic deceleration, interest rate volatility and a slowdown in venture capital funding, a recent report from Newmark has found.
The report, 2022 Mid-Year Life Science Overview & Market Clusters, notes that both tenant and investor demand for laboratory, incubator and biomanufacturing (GMP) space improved significantly throughout the COVID-19 pandemic, propelling life sciences as one of the most sought after and top performing niche sectors in real estate.
According to the report, life sciences has gained traction in the REIT space. The top 10 owners of life sciences wet laboratory/R&D space total 116.7 million square feet, 70 percent of which is owned by public or private REITs.
Boston, San Francisco, San Diego and Raleigh/Durham, N.C., remain the top life sciences clusters in the United States and collectively comprise more than 93 million square feet of laboratory and GMP space