Q4 2023 Lab Market Overview
San Francisco Q4 2023 Lab Market Overview
With a focus on conserving cash, many tenants in 2023 remained in a holding pattern with new leasing activity.
In the Bay Area, many tenants subleased their spaces. From Q4 2022 to Q4 2023, sublease vacancy increased from 1.6% to 4.0% with even more subleases being offered as available.
The market delivered 2.2MSF in newly constructed product in 2023 with 6.9MSF still under construction. Many of these projects broke ground while demand was at an all time high and the delivery of the product will contribute to upwards pressure on vacancy and contribute to over supply in the market.