In accordance with a brand new CBRE analysis report, funding in U.S. life sciences actual property elevated by 62 p.c final 12 months, with additional progress of not less than 10 p.c anticipated in 2022.
Funding in life sciences actual property, comprised of lab and Analysis and Growth (R&D) properties, reached $21.4 billion in 2021, a 62 p.c enhance over 2020. Funding within the sector has grown by 111 p.c since 2018.
“The surge in funding within the U.S. life sciences market is underpinned by robust provide and demand fundamentals,” mentioned Chris Bodnar, Vice Chairman and Co-Head of Healthcare & Life Sciences Capital Markets at CBRE. “A scarcity of present life sciences house out there for buy, coupled with strong and hovering property costs, have led most actual property traders targeted on this sector to pursue improvement alternatives.”
A number of new life sciences markets together with Los Angeles, Philadelphia and New York are rising to fulfill strong demand and plenty of new builders have been drawn to the sector. Between Q2 2020 and This autumn 2021, the variety of life sciences builders within the high 12 life sciences markets rose to 64 from 45, with house beneath building rising to 29.5 million sq. ft. from 16.2 million sq. ft. over the identical interval.
Mr. Bodnar added, “With lab emptiness charges close to document lows, this new improvement exercise ought to give extra space choices to occupiers and extra alternatives for traders on this booming sector.”