Bay Area Life Science Market Report
The Bay Area experienced its typical summer slowdown in the third quarter, with gross absorption totaling 845,000 SF, down from 913,000 SF in the previous quarter. Despite the slowdown, net absorption edged into positive territory, registering 33,000 SF. Market-wide vacancy declined slightly to 29.1%, down from 29.5% in the prior quarter. The total availability rate rose marginally to 32.9%, compared with 32.1% the previous quarter. Sublease availability continued to trend downward, decreasing to 5.5%, from 5.7% last quarter and 6.6% one year ago. The region’s 610,000-SF construction pipeline continued to contract during the third quarter of 2025, with 37.0% of ground-up development preleased. Despite economic headwinds, active tenant demand increased notably during the third quarter, reaching 3.1 million SF, up from 2.0 million SF in the previous quarter.
Download Bay Area Life Science Market Report 3Q25