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