2023 September Life Sciences Update

Inventory Growth has Tried to Keep Pace with Demand

› Life sciences inventory raced to keep pace with demand over the last three years, growing 18% since 2020. › Likewise, the construction pipeline has more than doubled since 2020, growing from 16 msf to its current 38 msf under construction. › Among the 15 markets, Boston has the most robust construction pipeline with nearly 15 msf of projects under construction. With the pipeline accounting for 42% of current inventory, Boston’s total inventory will grow significantly as projects are completed in the next few years. › The largest market by square footage is currently the San Francisco Bay Area. Inventory is expected to grow an additional 17%, with current projects under construction totaling nearly 8 msf. Key Takeaway: Employment-fueled growth has driven inventory and construction activity. As the market recalibrates, the construction pipeline may begin to slow in some markets.

Current Inventory and Under Construction

Current Inventory

Under Construction

U/C as % of Inventory

60

60%

50

50%

40

40%

30

30%

MSF

20

20%

10

10%

0

0%

Source: Cushman & Wakefield Research

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LIFE SCIENCES SEPTEMBER 2023