Paige Gross has an article in technical.ly, Philly real estate isn’t keeping up with life science lab space demand. She highlights some insights from the recent CBRE report, U.S. Life Sciences Trends 2021.
She writes, “The region is already home to nearly 10 million square feet of life sciences inventory, and has a 13.9% vacancy rate. At the same time, this latest CBRE report showed there are currently 61 tenants seeking space, with a nearly 40% increase in demand for space compared to six months ago.”
She also mentions how Life Science businesses and space can be found throughout the Philadelphia area, “In the suburbs, we see areas like King of Prussia and Malvern housing mature life sciences companies and representing a lot of the area’s square footage. There are also projects popping up in the Exton area, West Chester and down at the city’s Navy Yard.”
In addition to the Philadelphia area, the Raleigh Durham area is listed another fast growing area for Life Sciences. Research Triangle Park (RTP) has seen according to the report, “The Raleigh-Durham market has 1.2 million sq. ft. currently under construction (new, ground-up & conversions). All of this new construction is concentrated in the Central Durham and RTP/I-40 Corridor markets. There is more than 6 million sq. ft. of new life science inventory in the development pipeline.”
The report went on to add, “More than 50 single-story buildings near Research Triangle Park have sold to life science investors for intended lab conversions in the past two years”
The increase growth of Life Science businesses will impact a number of local real estate markets on the East Coast from Boston to Raleigh.