A Burlingame-based developer is betting that lagging demand eventually will catch up with the burgeoning supply of life science space in the Berkeley market by replacing an office campus.
The life science sector in the East Bay city has grown to about 1.5M SF, doubling in the last five years, but as a record-high tide of venture capital during the pandemic receded last year, demand has been unable to keep pace with new supply.
Berkeley's R&D market recorded a vacancy rate of 14.1% in the second quarter of 2024, according to CBRE data. The epicenter of the life science slump in the East Bay is just a few miles south in Emeryville, where vacancy hit 37% in Q2.
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