{"id":1004485576,"date":"2020-10-19T05:53:13","date_gmt":"2020-10-19T13:53:13","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004485576"},"modified":"2020-10-19T05:53:13","modified_gmt":"2020-10-19T13:53:13","slug":"life-sciences-real-estate-demand-thrives-cbre","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/life-sciences-real-estate-demand-thrives-cbre\/","title":{"rendered":"Life Sciences Real Estate Demand Thrives: CBRE"},"content":{"rendered":"
\"\"<\/a>

Image via Rawpixel.com\/564860<\/em><\/p><\/div>\n

While looking for ways to combat the COVID-19 pandemic, life sciences has been experiencing a boom in real estate demand, according to a new report from CBRE.<\/p>\n

\n

READ ALSO<\/strong>: Blackstone Recaps $14.6B Life Science Business<\/a><\/p>\n

\n

CBRE\u2019s Leading Life Sciences Clusters report showed that total commercial lab space increased by 12 percent in 2020 to 95 million square feet. On top of another 11 million square feet that\u2019s currently under construction, there\u2019s a notable increase of conversions of other property types<\/a> into lab space. In spite of all the additional lab space created and in the pipeline, rents are still rising due to a strong tenant demand. The report also noted that nearly all of the leading life sciences markets like Boston, San Francisco and San Diego, are seeing rising rents and low vacancy that\u2019s expected to continue next year.<\/p>\n

\u201cCOVID-19 has created some potential new sources of demand,\u201d Ian Anderson, CBRE Americas\u2019 head of office research told Commercial Property Executive<\/em>. \u201cOne of these is that it has accelerated a shift from companies to on-shore some of their life sciences operations, be it R&D, manufacturing, or distribution, so they are not left vulnerable to foreign sources or supply chain disruptions, like they were in 2020.\u201d<\/p>\n

Anderson also told CPE<\/em> that the life sciences industry may be benefiting from a shift in how the public perceives it from \u201cBig Pharma\u201d and \u201cprice gouging\u201d to \u201cthe savior of today\u2019s pandemic.\u201d He added that this shift in public opinion could also result in more funding from governments and more interest from private investors.<\/p>\n

CBRE\u2019s report also showed that total capital venture funding for the life sciences industry for the year ending in the second quarter of 2020 hit $17.8 billion. The record amount of funding came mostly from Boston and San Francisco and showed that the life sciences sector was outperforming the other sectors, which have seen declining investments since the third quarter of 2019.<\/p>\n

The boom in funding is also likely due to the industry\u2019s resiliency in the face of COVID-19. Employment in the life sciences sector declined 1.3 percent in July from its peak in March, but was still 1 percent higher than a year ago. The biotech research and distribution sector of life sciences experienced a particularly high employment growth, increasing 4.9 percent compared to a year ago.<\/p>\n

The testing, medical and diagnostic lab employment portion of the life sciences market, however, was less resilient, seeing a 5.5 percent decrease since February. Despite the slight decline from March to July, the life sciences sector was still performing better than the 7.6 percent decline of total nonfarm employment.<\/p>\n

Top U.S. life sciences clusters<\/h2>\n

Boston-Cambridge, the San Francisco Bay Area and San Diego retained their positions as the top three life science clusters in the U.S. Both Boston and San Francisco\u2019s markets offer wide talent bases and a lot of lab space and research universities with funding, while San Diego is home to many of the country\u2019s top health-care institutions and the fastest-growing rents for lab space, which saw an 18.4 percent increase since early 2019 to $55.59. Besides the established top markets, emerging markets like Pittsburgh and Austin are growing in popularity due to their focus on the R&D side of life sciences.<\/p>\n

For the year ending in the second quarter of 2020, property sales for lab\/R&D space declined 18 percent from the same period a year ago to $9.6 billion. The dip followed the overall pullback in the commercial real estate sector, but pricing was still competitive for life science spaces. Property sales in life sciences are continuing to flow, as earlier this month, Ventas Inc. acquired a 796,572-square-foot life sciences campus<\/a> for $1 billion.<\/p>\n

According to CBRE\u2019s report, the life sciences sector will continue to experience a positive outlook due to a combination of factors. On top of the boost in demand caused by the COVID-19 pandemic, Anderson told CPE<\/em> that the industry will see growth due to the nation\u2019s growing and aging population, the new discoveries and rapid advances in technology, and governments and insurance companies pushing for more solutions.<\/p>\n

\u201cThe flood of money and government support from COVID-19 this year may have accelerated the pace of innovation and discoveries that was already occurring in labs prior to the crisis,\u201d Anderson told CPE. <\/em><\/p>\n

Read the full report by CBRE<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

A shift in public opinion could result in more funding for the sector, according to CBRE\u2019s latest report.<\/p>\n","protected":false},"author":883,"featured_media":1004485594,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21808,45527,21754,23891,21742],"tags":[32789,48950,49237],"class_list":["post-1004485576","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-keyword-optimized","category-medical-office","category-national","category-latest","tag-cbre","tag-coronavirus","tag-ian-anderson"],"acf":[],"yoast_head":"\nLife Sciences Real Estate Demand Thrives: CBRE - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/life-sciences-real-estate-demand-thrives-cbre\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Life Sciences Real Estate Demand Thrives: CBRE\" \/>\n<meta property=\"og:description\" content=\"A shift in public opinion could result in more funding for the sector, according to CBRE\u2019s latest report.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/life-sciences-real-estate-demand-thrives-cbre\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2020-10-19T13:53:13+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2020\/10\/image-from-rawpixel-id-564860-jpeg.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"620\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Jackson Chen\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/life-sciences-real-estate-demand-thrives-cbre\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/life-sciences-real-estate-demand-thrives-cbre\/\",\"name\":\"Life Sciences Real Estate Demand Thrives: CBRE - Commercial Property Executive\",\"isPartOf\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/life-sciences-real-estate-demand-thrives-cbre\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/life-sciences-real-estate-demand-thrives-cbre\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2020\/10\/image-from-rawpixel-id-564860-jpeg.jpg\",\"datePublished\":\"2020-10-19T13:53:13+00:00\",\"author\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/8d4607aca26f3427c49fe54ddc82ddf1\"},\"breadcrumb\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/life-sciences-real-estate-demand-thrives-cbre\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.commercialsearch.com\/news\/life-sciences-real-estate-demand-thrives-cbre\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/life-sciences-real-estate-demand-thrives-cbre\/#primaryimage\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2020\/10\/image-from-rawpixel-id-564860-jpeg.jpg\",\"contentUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2020\/10\/image-from-rawpixel-id-564860-jpeg.jpg\",\"width\":800,\"height\":620,\"caption\":\"Image via Rawpixel.com\/564860\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/life-sciences-real-estate-demand-thrives-cbre\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.commercialsearch.com\/news\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Life Sciences Real Estate Demand Thrives: CBRE\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#website\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/\",\"name\":\"Commercial Property Executive\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.commercialsearch.com\/news\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/8d4607aca26f3427c49fe54ddc82ddf1\",\"name\":\"Jackson Chen\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/06\/jchenheadshot.png?w=96\",\"contentUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/06\/jchenheadshot.png?w=96\",\"caption\":\"Jackson Chen\"},\"description\":\"Jackson Chen is a Connecticut-based freelance writer who has reported on real estate for more than five years. He cut his teeth with real estate journalism when he previously wrote for Real Estate Weekly, the longest-running real estate publication in New York City. He has been writing for Multi-Housing News since late 2019.\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/author\/jackson-chen\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Life Sciences Real Estate Demand Thrives: CBRE - Commercial Property Executive","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.commercialsearch.com\/news\/life-sciences-real-estate-demand-thrives-cbre\/","og_locale":"en_US","og_type":"article","og_title":"Life Sciences Real Estate Demand Thrives: CBRE","og_description":"A shift in public opinion could result in more funding for the sector, according to CBRE\u2019s latest report.","og_url":"https:\/\/www.commercialsearch.com\/news\/life-sciences-real-estate-demand-thrives-cbre\/","og_site_name":"Commercial Property Executive","article_publisher":"https:\/\/www.facebook.com\/CPExecutive","article_published_time":"2020-10-19T13:53:13+00:00","og_image":[{"width":800,"height":620,"url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2020\/10\/image-from-rawpixel-id-564860-jpeg.jpg","type":"image\/jpeg"}],"author":"Jackson Chen","twitter_card":"summary_large_image","twitter_creator":"@cpexecutive","twitter_site":"@cpexecutive","schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.commercialsearch.com\/news\/life-sciences-real-estate-demand-thrives-cbre\/","url":"https:\/\/www.commercialsearch.com\/news\/life-sciences-real-estate-demand-thrives-cbre\/","name":"Life Sciences Real Estate Demand Thrives: CBRE - Commercial Property Executive","isPartOf":{"@id":"https:\/\/www.commercialsearch.com\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.commercialsearch.com\/news\/life-sciences-real-estate-demand-thrives-cbre\/#primaryimage"},"image":{"@id":"https:\/\/www.commercialsearch.com\/news\/life-sciences-real-estate-demand-thrives-cbre\/#primaryimage"},"thumbnailUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2020\/10\/image-from-rawpixel-id-564860-jpeg.jpg","datePublished":"2020-10-19T13:53:13+00:00","author":{"@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/8d4607aca26f3427c49fe54ddc82ddf1"},"breadcrumb":{"@id":"https:\/\/www.commercialsearch.com\/news\/life-sciences-real-estate-demand-thrives-cbre\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.commercialsearch.com\/news\/life-sciences-real-estate-demand-thrives-cbre\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.commercialsearch.com\/news\/life-sciences-real-estate-demand-thrives-cbre\/#primaryimage","url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2020\/10\/image-from-rawpixel-id-564860-jpeg.jpg","contentUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2020\/10\/image-from-rawpixel-id-564860-jpeg.jpg","width":800,"height":620,"caption":"Image via Rawpixel.com\/564860"},{"@type":"BreadcrumbList","@id":"https:\/\/www.commercialsearch.com\/news\/life-sciences-real-estate-demand-thrives-cbre\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.commercialsearch.com\/news\/"},{"@type":"ListItem","position":2,"name":"Life Sciences Real Estate Demand Thrives: CBRE"}]},{"@type":"WebSite","@id":"https:\/\/www.commercialsearch.com\/news\/#website","url":"https:\/\/www.commercialsearch.com\/news\/","name":"Commercial Property Executive","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.commercialsearch.com\/news\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/8d4607aca26f3427c49fe54ddc82ddf1","name":"Jackson Chen","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/image\/","url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/06\/jchenheadshot.png?w=96","contentUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/06\/jchenheadshot.png?w=96","caption":"Jackson Chen"},"description":"Jackson Chen is a Connecticut-based freelance writer who has reported on real estate for more than five years. He cut his teeth with real estate journalism when he previously wrote for Real Estate Weekly, the longest-running real estate publication in New York City. He has been writing for Multi-Housing News since late 2019.","url":"https:\/\/www.commercialsearch.com\/news\/author\/jackson-chen\/"}]}},"jetpack_featured_media_url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2020\/10\/image-from-rawpixel-id-564860-jpeg.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004485576","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/users\/883"}],"replies":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/comments?post=1004485576"}],"version-history":[{"count":8,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004485576\/revisions"}],"predecessor-version":[{"id":1004485612,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004485576\/revisions\/1004485612"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/media\/1004485594"}],"wp:attachment":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/media?parent=1004485576"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/categories?post=1004485576"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/tags?post=1004485576"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}