CBRE’s recent report for Q4 2022 shows promise for the future of Seattle’s life science industry.
The region recorded its highest fourth quarter capital funding on record, and it received a $1.4 billion increase in funding from the National Institutes of Health. The market also saw strong employment growth and steady venture capital funding. In all, about $341 million went toward the life science industry that quarter.
“There’s reason for optimism in Seattle’s life sciences sector,” said Hans Kemp, executive vice president and co-leader of CBRE’s Life Sciences practice in the northwest. “Venture capital funding is near record levels, rental rates are at an all-time high, and the vacancy rate remains below equilibrium. Yet, the economic environment is making tenants hesitant to commit to real estate. Demand and transaction volume is extremely low. It will be interesting to see what unfolds in 2023 in markets like Seattle that are comprised primarily of early-stage organizations. When they are ready to move or expand, these companies will have an uncharacteristically large number of good options.”