Philadelphia life science leasing increasing an average of 54 percent each year
Another 360,000 s.f. is set to commence in 2021 with many more tenants actively in the market
October 23, 2020
- Across the Philadelphia Market, the life science sector has become a driving force of leasing, development, and optimism. In the last five years, nearly 3 million square feet of life science tenants have commenced leases to relocate to the region and/or expand existing footprints.
- Although COVID-19 has put a damper on a significant portion of real estate activity, highly anticipated development projects in the city and the suburbs continue mostly uninterrupted due to the lack of quality, well-located lab space, especially near hubs of innovation (such as universities) and highly educated talent.
- These increases in occupancy bode well for the ongoing development of Philadelphia as life science cluster. Ranked 6th nationally and closely trailing Raleigh-Durham by a slim margin, Philadelphia experienced record-setting venture capital investment in life sciences in 2019 at $1.05 billion, nearly double 2018’s total, pointing towards strong momentum for the sector and life sciences real estate in 2021 and beyond.