Report

Denver/Boulder Life Sciences Market Overview Q4 2022

January 25, 2023

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  • The life sciences development pipeline continues to grow, having reached over 930,000 sq. ft. in Q4 2022. Nearly 141,000 sq. ft. delivered this quarter, including Fitzsimmons’ Bioscience 5 and the Boulder Labs buildings at 5300 & 5305 Sterling Drive.
  • The Denver/Boulder life sciences market maintained one million sq. ft. or more of active life sciences tenant requirements for the second straight year in 2022.
  • The delivery of available new construction combined with several delayed occupancies pushed the market’s overall vacancy to 8.9% in Q4 2022, up from 4.6% a quarter earlier. Vacancy in Boulder rose nearly 300 basis points to 3.3%, also as a result of vacant new space delivering.
  • Rental rates continued to rise steadily, averaging $60.00 per sq. ft. NNN market-wide and upwards of $70.00 per sq. ft. NNN in Boulder.
  • The region’s strong talent base, increasing new supply, and comparatively lower rental rates than in other major life sciences hubs continues to underscore the appeal of the Denver/Boulder market and will drive more companies to establish a local presence.