But there is hope for anxious landlords: The life sciences industry, flush with cash from a record $70 billion of private and public capital investments in North America last year, is swooping in to claim that empty space.Across the six largest U.S. life sciences markets, more than 20 percent of the laboratory spaces being built are conversions from offices. In San Francisco, Chicago, Boston and Raleigh, N.C., asking rents for lab space have increased more than 60 percent since the beginning of 2016, while office rents have crept up only 15 to 30 percent.As it has across a number of industries, the pandemic accelerated a trend that was already in motion.“It’s been a wild 15 months,” said Austin Barrett, head of the life sciences division for the advisory firm Savills. “The office market and the lab market are a tale of two cities right now.”
This can't last forever, but it's nice to see. Best wishes to all of us.