March 2025 Life Sciences Update

Inventory Growth Has Decelerated

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CONTENTS

• The pace of inventory growth has slowed across most markets. In the U.S., Boston experienced the fastest growth in the last five years, adding nearly 19 million square feet (msf) of new lab and cGMP space since 2020. Such a large influx of new space has pushed up the vacancy rate in Boston, prompting a slowdown in the current pipeline to 10% of existing inventory. • The San Francisco Bay Area also added a significant amount of new space to the market, with nearly 9 msf of new construction since 2020. The Bay Area’s construction pipeline has also slowed, now representing just 7.6% of total inventory. • Construction activity remains stronger in emerging European markets. In the UK, projects under construction account for 29% of current inventory, with London poised to nearly triple its total inventory. Likewise, Leiden, Netherlands, will more than double its current inventory.

Current Inventory and Under Construction

Current Inventory

Under Construction

U/C as % of Inventory (RHS)

60

60%

3.7

50

50%

4.9

40

40%

30

30%

MSF

3.6

1.8

1.0

20

20%

0.0 0.0

1.1

0.3

10

10%

0.2

1.0

0.0

1.7 0.5

0

0%

U/C off chart: London-153% and Leiden-185%

Source: Cushman & Wakefield Research

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Cushman & Wakefield