Report: Area’s Life Sciences Real Estate Market Normalizes in Q4

Share:

Metrics gauging the life sciences sector varied to end 2022 as the industry normalized in the fourth quarter after robust growth in 2021 and much of ‘22, according to a new report from CBRE.

Lab and R&D facility vacancy rates across the Puget Sound region hit 8.9 percent in the quarter, up from 8 percent in the third quarter. Average asking rental rates increased in Bothell and Seattle, while demand for space from tenants declined. Fourteen companies were looking for a cumulative 325,000 square feet across the region, down from 400,000 square feet of demand in the third quarter and a pandemic-era high of 1.2 million square feet in the third quarter of 2021, according to a CBRE news release on the report.

According to a report last October by an association representing Washington’s life science industry, almost $5.1B was invested in the state’s biotechnology, medical technology, and digital health companies in 2021. The funding came from more than 180 investors worldwide, including life science companies through mergers and acquisitions, and through venture capital funds, according to the report published by Life Science Washington. The 2021 investment total was second only to 2018, when Seattle-based Juno Therapeutics was acquired for $8.6 billion, according to the report.

Share: