Some bio clusters are reporting flat or even increased space absorption, with little or no increase in vacancy rates. And in some markets, like Greater Boston, vacancy rates for lab space have actually declined.
Minneapolis, MN (Vocus) July 25, 2009
There’s no denying that the recession, the credit crunch, pharmaceuticals industry mergers and an overall slump in the commercial property market are having a negative impact on the life sciences real estate sector. In most markets, vacancies are up while absorption and net rental rates are down. But a Page 1 article in the most recent edition of Bioscience Real Estate Insights suggests that the life sciences niche still seems to be holding up better than most other commercial real estate sectors – particularly the “four main food groups” of office, industrial, retail and multifamily.
“There are even some pockets of surprisingly good news,” says Murray W. Wolf, publisher and founding editor of BREI. “Some bio clusters are reporting flat or even increased space absorption, with little or no increase in vacancy rates. And in some markets, like Greater Boston, vacancy rates for lab space have actually declined.”
BREI is a national, business-to-business newsletter that covers bioscience real estate, development financing and investment. BREI was launched in 2006 in recognition that there is a distinct sector of the commercial real estate market specializing in office, research and development (R&D), laboratory, manufacturing, and distribution space owned or leased by pharma, biotech and medical devices companies, as well as colleges, universities, hospitals and other biomedical research institutions.
In addition to the lead story on leasing, the current edition of BREI also includes extensive articles about:
- How the demise of a California biotech firm actually benefited two of its publicly traded REIT landlords
- The opening of $100 million-plus research facilities in California and Utah
- Plans to expand a controversial biopark in Massachusetts to more than 1 million square feet of space
- Ernst & Young’s predictions regarding the future of the bio business, as presented at the BIO 2009 conference
- More BIO 2009 coverage: Why biotech expert Steve Burrill thinks the industry has changed for good
- What a leading investment banker told the AURP BioParks 2009 conference about the capital markets
- Bioscience real estate transactions, projects, economic development, companies and people news from North Carolina, Seattle, New York, Nebraska, Maryland, New Jersey, Oregon, Virginia, Pennsylvania, Massachusetts, California, Minnesota, Wisconsin, Michigan, Kansas, Alaska, New Mexico, Illinois, Oklahoma, Ohio, Florida, Indiana, Missouri, Georgia, Colorado and more.
About Bioscience Real Estate Insights
At Bioscience Real Estate Insights, we define the biosciences – or life sciences, as some call them – as the scientific study of living things. The real estate development, financing and investment issues associated with the pharma, biotech and medical devices sectors are unique, and they deserve our specialized editorial focus. This national, B2B newsletter offers the most comprehensive coverage in the industry. For more information regarding BREI, please visit us at http://www.breinsights.com.