Bay Area Life Science Market Report
| Availability Rate (%)||6.6%|
|Net Absorption (SF)||-225,718|
After recording positive absorption in the prior six quarters, the Bay Area life science market took a step backwards, closing at negative 225,718 square feet. The swing in absorption is no cause for alarm and is relative to the 229,639-square-foot life science facility at 150 Industrial Road in San Carlos and 110,000-square-foot Theravance sublease at 901 Gateway Boulevard in South San Francisco becoming available this quarter. Omitting these new availabilities from the numbers would have resulted in 113,921 square feet of positive absorption for the quarter. Demand held steady at 4.4 million square feet this quarter, compared to 4.5 million in the previous quarter and 4.3 million one year ago. Market-wide vacancy increased to 5.7% this quarter, up from 4.9% in the previous quarter, while availability increased to 6.6%, up from 5.9% in the previous quarter.