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CBRE
Brief
 | 
Intelligent Investment
Life Sciences Occupancy Remains Near
All-Time High
CBRE RESEARCH
 | 
MARCH 2024
FIGURE 1: San Francisco Bay Area Life Sciences Occupancy & Vacancy Historical Trend 

Rising vacancy over the past year has modestly impacted the amount of occupied space by life sciences companies. About 4.4 million sq. ft. of newly occupied space was added between Q1 2020 an Q1 2023. While occupancy declined by 1.0 million sq. ft. or 3.3% since then, it remains well above pre-pandemic levels. The driver of increased vacancy was new construction completions, primarily within the San Francisco Peninsula submarket. There’s 7.9 million sq. ft. under construction and expected to be completed by 2026.

Demand for space recently rebounded off its early 2023 lows with about 80 tenants seeking 3.5 million sq. ft. currently. Many of these tenants are seeking modern buildings and spaces capable of meeting the infrastructure requirements of advancing science and technology.

Across the Bay Area, about half of the life sciences building inventory was built before 2000 and has not been substantially renovated. Three-quarters of this pre-2000 vintage (18.6 million sq. Ft.) is in Silicon Valley and the East Bay.

Modernization of the life sciences building inventory is well underway and by 2026, more than one-third of the building inventory will be less than six years old. Although leasing of new buildings may be slower than originally expected, they are a key factor for future innovation and will ultimately provide what the life sciences industry needs to continue thriving.
Research Contacts:

Colin Yasukochi
Executive Director, CBRE Tech Insights
Colin.Yasukochi@cbre.com

Konrad Knutsen
Director, Northern CA, Greater Los Angeles
Konrad.Knutsen@cbre.com
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