There will be a record amount of construction completions in the U.S. life science market in 2024, followed by a dramatic drop in 2025, according to CBRE.
In 2024, 21.3 million sf of life science space will be completed in the 13 largest U.S. markets. That’s up from 13.9 million sf last year and 5.6 million sf in 2022.
Much of the projected slowdown is due to a softer economy and reductions in venture capital investment and initial public offerings. Most of the construction scheduled for completion this year, 79%, is in the three largest biotech hubs: Boston, the San Francisco Bay Area, and San Diego.
The potential for a high vacancy rate in those areas is greatest, while supply and demand is expected to remain more balanced in the 10 other primary markets. The average vacancy rate in the 13 markets stood at 10.6% as of the third quarter of 2023.
Related Stories
Giants 400 | Dec 31, 2021
2021 Science and Technology Sector Giants: Top architecture, engineering, and construction firms in the U.S. S+T facilities sector
HDR, CRB, Jacobs, Skanska USA, and Whiting-Turner Contracting Co. top the rankings of the nation's largest science and technology (S+T) sector architecture, engineering, and construction firms, as reported in the 2021 Giants 400 Report.
Laboratories | Nov 18, 2021
Tapping into the life sciences building boom
Paul Ferro of Form4 Architecture discusses how developers are pivoting to the life sciences sector, and what that means for construction and adaptive reuse.
2021 Building Team Awards | Nov 17, 2021
Caltech's new neuroscience building unites scientists, engineers to master the human brain
The Tianqiao and Chrissy Chen Institute for Neuroscience at the California Institute of Technology in Pasadena wins a Gold Award in BD+C's 2021 Building Team Awards.
Laboratories | Nov 17, 2021
New report finds a biopharma industry being reshaped by disruption
Industry respondents to CRB’s survey weigh in on project delivery, digitization, and off-site manufacturing for life sciences construction.
Laboratories | Oct 14, 2021
‘Next-generation’ Quest Diagnostics lab unveiled in New Jersey
Mark Cavagnero Associates designed the project.
Laboratories | Aug 31, 2021
Pandemic puts science and technology facilities at center stage
Expanding demand for labs and life science space is spurring new construction and improvements in existing buildings.
Giants 400 | Aug 30, 2021
2021 Giants 400 Report: Ranking the largest architecture, engineering, and construction firms in the U.S.
The 2021 Giants 400 Report includes more than 130 rankings across 25 building sectors and specialty categories.
Laboratories | Aug 30, 2021
Science in the sky: Designing high-rise research labs
Recognizing the inherent socioeconomic and environmental benefits of high-density design, research corporations have boldly embraced high-rise research labs.
Laboratories | Aug 25, 2021
Lab design strategies for renovations and adaptive reuse
Lab design experts in HOK’s Science + Technology group outline the challenges organizations must understand before renovating a lab or converting an existing building into research space.
Architects | Aug 5, 2021
Lord Aeck Sargent's post-Katerra future, with LAS President Joe Greco
After three years under the ownership of Katerra, which closed its North American operations last May, the architecture firm Lord Aeck Sargent is re-establishing itself as an independent company, with an eye toward strengthening its eight practices and regional presence in the U.S.
