The life sciences vacancy rate has jumped two percentage points for the second quarter to 16.7% as net absorption of 294,390 square feet was offset by 4.6 million square feet of vacant new deliveries, according to the CBRE 2Q Life Sciences market report. However, year-to-date absorption is negative 325,197 square feet due to the sluggish first quarter.

Total leasing activity fell during the quarter to 2.6 million square feet, while the percentage of new leases and expansions increased to 57% from 46%. Average asking rent increased by 2.7% quarter-over-quarter to $71.84 NNN per square foot due mainly to increased availability and new supply of top-tier space, the report said.

Total lab and R&D space under construction fell to 21 million square feet, the lowest quarterly total since Q2 2021. Nearly five million square feet of lab space was delivered during the quarter, only 7% of which was pre-leased, and an additional 10 million square feet is scheduled to be delivered later this year.