The life science sector in New York City is filled with plenty of encouraging signs — but some activity is lagging. A market report from CBRE finds that leasing volume in 2024 plunged by 60 percent to 158,000 square feet. That represents the category's lowest yearly level since 2020.
Lab space tumbled by 13 percent to 531,000 square feet, while the number of requirements dropped to 22, from 25. That came "as many tenants are hesitant to reenter the market for lab space amid economic uncertainty and [took] a more conservative approach to capital outlays," said CBRE.
CBRE said that demand for lab space was higher between 2019 and 2021 — and NYC made investments to address the needs, but the market has slowed down since and an influx of supply has entered the market. Overall, lab inventory sat at 3.4 million square feet, as of the end of 2024.
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