Life Sciences Leverage: Making the Most of Today's Market

Though the explosion in the life sciences market has slowed significantly since its pandemic peak, the market remains steady, with funding levels still higher than they were ten years ago. This figure, coupled with the abundance of sublease space available, offers encouraging news for occupiers after several years of near-impossible market conditions. New tenants to the market with fresh funding will have more space to choose from in the year ahead than ever before, with nearly 7M SF of brand new, unclaimed inventory delivering through the pipeline on top of the record amount of sublease space available at a discount.

For occupiers looking for space, do your research to maximize leverage. Given the pullback in demand for lab spaces, landlords are eager to fill vacancies and are more willing to make concessions on asking rents and tenant improvement packages. Be careful who you sign on with, though: as landlord defaults become more common across markets, occupiers should perform a full financial analysis to ensure a successful landlord partnership.

For more trends and expert predictions in life sciences real estate, check out Cresa’s Q2 Market Insight Reports.