Q2 2024 Lab Market Overview

Subleases continue to be leased faster than direct spaces. Subleases offer speed to occupancy, base rate discounts, and mitigate upfront capital expenditures.

New construction continues to come online. Expect vacancy to continue rising as much of this product is delivered in shell condition, struggling to compete with existing built out lab product already on the market.

While venture capital remains sluggish, many companies are raising small amounts of extension capital to preserve runway. As a result, leasing activity for tenants remains under scrutiny from their respective Boards.