A Burlingame-based developer is betting that lagging demand eventually will catch up with the burgeoning supply of life science space in the Berkeley market by replacing an office campus.

The life science sector in the East Bay city has grown to about 1.5M SF, doubling in the last five years, but as a record-high tide of venture capital during the pandemic receded last year, demand has been unable to keep pace with new supply.

Berkeley's R&D market recorded a vacancy rate of 14.1% in the second quarter of 2024, according to CBRE data. The epicenter of the life science slump in the East Bay is just a few miles south in Emeryville, where vacancy hit 37% in Q2.

Continue Reading for Free

Register and gain access to:

  • Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.