Biomanufacturing/GMP Trends

Persistent Demand for New Biomanufacturing/GMP Space

Leasing activity for Biomanufacturing/Good Manufacturing Process (GMP) facilities slowed in 2022 as tenants postponed real estate decisions amid economic uncertainty. Some life sciences companies deferred plans to lease or build their own GMP space due to capital constraints and instead opted to engage third-party drug manufacturers. While demand for space remains significant, there has been a moderate increase in vacancy in most markets as construction ramped up.

The bulk of large-capacity Biomanufacturing/GMP facilities (owner occupied and leased) are in California and the Northeast Corridor (Figure 26).

Figure 26: Top 10 Metros by Biomanufacturing Capacity

Source: BioPLan, CBRE Research, 2022.

Market Indicators

Figure 27 shows select Biomanufacturing/GMP markets for leasable space and their current supply and demand fundamentals. Year-over-year rent growth remains robust in the face of persistent demand.

Figure 27: Select Biomanufacturing/GMP Market Indicators

Source: CBRE Research, 2022.
Note: Rent assumes $100 to $200 in tenant improvement allowance.