New York's life sciences sector saw a dramatic increase in leasing during the third quarter. Overall, signings were 31,000 square feet, a plunge of 152 percent year-over-year (but down 80 percent quarter-over-quarter), according to a market report from CBRE.
The largest deal in the third quarter was a 13,101 square foot signing, with the location and tenant not revealed. That was followed by 12,168 and 5,894 square feet lease deals in the market. In the third quarter alone, the largest deal exceeded all three of those leases, with a tenant signing for 105,000 square feet.
Meanwhile, venture capital funding also slumped, generating just $131.40 million, about a quarter of the $489 million posted in the 12 months prior and 64 percent under the five-year quarterly average.
However, some other fundamentals for life sciences in New York looked solid. Rents, while flat from the previous three months, increased by two percent year-over-year to $105.40 per square foot on average.
Availability was up slightly quarter-over-quarter but declined by two percentage points to 27.1 percent year-over-year. However, "at 11.6%, NYC’s occupancy-ready, built lab exclusive availability rate was up 100 bps from the previous quarter and was up 140 bps from its level one year ago."
Moreover, lab requirements dropped by 36 percent from the previous 12 months to 435,000 square feet.
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