Big Pharma Strengthens U.S. Life Sciences Real Estate Fundamentals in Q2
U.S. Life Sciences | Q2 2022
04 Aug 2022 1 Minute Read
- U.S. life sciences employment increased by 5.5% year-over-year in Q2 2022, above its three-year average growth rate of 4.6%. The Biotech R&D sector had a record 13.5% year-over-year job growth.
- Life sciences venture capital funding decreased by 13.3% quarter-over-quarter to $5.8 billion in Q2 but was greater than any other Q2 level prior to 2021.
- Despite caution by small and mid-sized companies, Big Pharma continued to gobble up space across the U.S. With continued demand, the overall lab vacancy rate of the top 12 U.S. life sciences markets fell by 10 basis points (bps) in Q2 to 5.2%.
- The average lab asking rent of the top 12 markets increased by 5.8% quarter-over-quarter to $54.77 per sq. ft. NNN.
- Total under-construction lab space increased by more than 2 million sq. ft. quarter-over-quarter to 31.3 million sq. ft. Nearly 29 million sq. ft. of the total was speculative development that was 31% preleased as of Q2