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Life Sciences Vacancy Rate Climbs on New Deliveries

Nearly 5 million square feet of vacant new deliveries hit the life sciences market during the second quarter.

By Kristen Smithberg | August 05, 2024 at 05:11 AM

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.

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