Q2 2024 Cresa Market Research - I-270 Corridor Suburban Maryland Lab Market Overview Report

Market Trends for the I-270 Corridor's Lab Market

• High-end space is being given back in Class A, premier buildings. Due to elevated availability for this type of product, especially in the Rockville/Bethesda submarket, rates are experiencing upwards pressure. 
• Subleases continue to be an attractive option compared to direct spaces. Subleases offer speed to occupancy, base rate discounts, and mitigate upfront capital expenditures. 
• 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. 
• 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.

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