Demand for life science space in the Bay Area continued to weaken in the second quarter, with the market registering net absorption of negative 466K SF and overall availability approaching 16%.
The disparity between supply and demand during the widely felt slowdown in one the nation's largest life science hubs is likely to expand as a wave of deliveries from nearly 10M SF of new construction and conversions arrives in coming months, according to the latest market report from CBRE.
"The ongoing slowdown in venture capital funding, triggered by quantitative tightening by the Fed over the past twelve months, has been the leading contributor to a contraction in demand," CBRE said. "The ongoing challenges in credit and venture capital drew what had been a flood of leasing activity to a mere trickle."
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