Although the U.S. life sciences sector had robust construction completions that pushed the vacancy rate to 19.7%, net absorption was positive for the fourth quarter, according to a CBRE report.

Net absorption has increased for three of the past five quarters, reaching 920,000 square feet during the fourth quarter. The San Francisco Bay Area and San Diego led net absorption growth. Momentum could carry through to this year as fourth-quarter numbers showed gradual improvement across the 13 largest life sciences markets, the report said. Leasing activity for lab space grew 28% year over year to 3.4 million square feet.

Record high employment driven by new drugs receiving federal approval and an increase in venture capital funding boosted the life sciences sector. CBRE said VC funding was up 19% to $30.4 billion for the year.