Continuing to expand in response to the Covid-19 pandemic, the nation’s life science lab space is expected to grow by around 20% between now and 2025, according to a new report.
The commercial real estate services company CRBE Group thinks that 20% growth will be seen in the construction of both life sciences laboratory space, as well as space for research and development.
The report indicates that laboratory space construction reached record proportions in both 2020 and 2021, returning to a “more normal space in 2023, although demand for lab/R&D space remains well above pre-pandemic levels.”
On a parallel line, life sciences employment also reached record highs at the start of this year, with particular job hot spots in the Boston/Cambridge area, as well as metro San Francisco and Seattle.
According to a recent Bureau of Labor Statistics report, overall employment in the nation’s life sciences industry is expected to grow by about 7% annually through the duration of the decade.
The only potential trouble spot for continued life science lab construction, says the CRBE report: “Recent turmoil in the banking system which may cause further reductions in venture capital funding to the industry this year.”
Even so, venture capital funding is expected to increase through the year, with public funding particularly through the National Institutes of Health adding to current and foreseeable growth.
By Garry Boulard
