Lab/R&D Construction Slows Along with Leasing Activity

Executive Summary

• The overall lab/R&D vacancy rate for the top 13 markets tracked by CBRE rose to 21.4% in Q1, driven by negative net absorption and new construction.
• Average asking rent declined to $73.34 NNN per sq. ft.
• While total leasing activity was down, tenants in the market rose quarter-over-quarter.
• Space under construction fell to 8 million sq. ft., 41.8% of which was preleased. Deliveries totaled 3.1 million sq. ft.
• Venture capital funding for life sciences companies increased quarter-over-quarter to $6.1 billion.
• Biotech R&D employment was at an all-time high in January and February 2025.