Posts by Cale Miller

Life Science Spotlight: The Bay Area

on October 05, 2021

hughes marino commercial real estate bay area life science spotlight

In the Bay Area, the market continues to be tight with record low vacancy rates and high demand for laboratory space. Based on these market conditions, life science companies that need lab space should be thinking 24 months ahead to ensure they can secure the needed real estate for their operations. Due to limited supply, new transactions for wet laboratory space will require a minimum 7-10-year lease and very few smaller spaces under 10,000 square feet exist with pre-built lab or lab opportunities. For early to mid-stage companies, that need more flexible options and do not want to overcommit, second generation space is the preferred option when it becomes available, but it is critical to move fast if space presents itself for occupancy. For early-stage biotech companies, we’re seeing a trend towards shared lab spaces which offer shorter lease terms, such as one year, and no capital expenditure. Smart Labs has added some key vacancy to the market and although it is expensive on a price per square foot basis, the ability to lease shorter term and flex up/down as needed, coupled with the capital expenditure avoidance, creates a ripe deal-making market for shared lab operators.

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About this Author
Cale Miller

Cale Miller

Cale Miller is a senior vice president of Hughes Marino, a global corporate real estate advisory firm that exclusively represents tenants and buyers. Contact Cale at 1-844-662-6635 or to learn more.