In Raleigh, the life science sector is witnessing a historic low in lab and R&D space vacancies at 4.9%, with lease prices seeing a 7.5% increase from March to September 2021 across the top life science markets, as per CBRE’s latest findings.

The Raleigh-Durham area, featured in CBRE’s top 12 life science markets, is experiencing sustained high demand. This demand is fueling both new constructions and the refurbishment of existing properties for life science applications, with 1.2 million square feet of space currently being developed or under construction.

Life science firms are actively seeking nearly 23.8 million square feet of new lab space in these markets, outstripping the available construction space by 2.8 million square feet. The Triangle, in particular, is a hotbed for this demand, especially from cell gene therapy companies looking to expand.

The Triangle’s life sciences inventory is set to exceed 6 million square feet, with some of the most competitive lease rates at an average of $29.11 per square foot NNN—the second-lowest among the surveyed metropolitan areas.

Ann-Stewart Patterson, First Vice President at CBRE|Raleigh, notes the significant interest from life sciences companies and investors in the market. Life Science Logistics, headquartered in Dallas, Texas, plans to occupy 132,000 square feet near Raleigh-Durham Airport in a $15 million project, potentially creating 50 to 100 jobs by April 2022.

Raleigh-Durham’s appeal lies in its lower business costs, strong talent pool from local universities, and a robust pipeline of new products, fostering a thriving life sciences hub expected to grow further.

The Triangle’s life science and biotechnology job market is expanding at record speeds, with 34,000 industry workers in 2020 and job growth at 5% overall, and 6.7% in R&D roles.

The report anticipates more industry jobs as the demand for life science space persists. Over 50 buildings near Research Triangle Park have been sold for lab conversions in the last two years, including The Stitch and a 109-acre property owned by Trinity Capital, soon to be known as Spark LS.

Significant investments from Amgen, Tempus, Grail, and FUJIFILM Diosynth Biotechnologies, which plans to hire more employees and expand its facilities by 89,000 square feet in Morrisville, are bolstering the industry. Iqvia is also set to add hundreds of workers to a new 160,000 square foot facility.

After selling its Durham facility to National Resilience, Inc. for $110 million, bluebird bio retained about 100 employees post-transaction. Joel S. Marcus of Alexandria Real Estate Equities predicts a bright future for the Research Triangle’s life science demand, despite pandemic-related economic disruptions.

With venture-capital funding for U.S. life sciences exceeding $30 billion—a record high—over the past year, and $586 million invested in Triangle companies, the region’s life science industry is poised for continued growth and innovation.