Demand from life sciences tenants in search of lab space in New York City remained robust in the third quarter as premium product became available, CBRE reported. During Q3, demand for space reached 2.1 million square feet, while new lab space under construction or redevelopment totaled 866,013 square feet.
Three of the four projects underway are spaces being converted into labs, including Elevate Research Properties’ West End Labs in Manhattan and Longfellow’s Hatch in Long Island City.
“Lab leasing activity was strong in the third quarter as many large hospitals and life sciences companies take advantage of New York City’s deep pool of highly educated workers,” said CBRE’s David Stockel. “We are seeing an increase in demand and leasing momentum compared to previous years, and we are confident that the life sciences sector will continue to grow throughout the area.”