Bay Area Life Science Market Report
Market-wide vacancy rose slightly to 27.9% this quarter, up from 27.0% last quarter. Availability also increased, reaching 30.1%, compared to 29.6% in the prior quarter. Sublease availability continued to decline, falling to 6.0%, down from 6.6% last quarter. Fourth-quarter leasing volume reached its highest level since the fourth quarter of 2021, rising 86.0% quarter-over-quarter and 276.0% year-over-year. The region’s 3.9-million-SF construction pipeline contracted during the fourth quarter of 2024, with 16.0% of ground-up construction preleased. Active demand for lab space decreased to 2.1 million SF, down from 2.7 million SF in the prior quarter and 2.6 million SF one year ago. No new developments broke ground in 2024, as developers remained cautious due to softening demand and challenges in securing financing.
Download Bay Area Life Science Market Report 4Q24