Denver/Boulder Life Sciences Market Overview Q4 2023

‒      Net absorption for Q4 2023 totaled approximately 236,000 sq. ft. after both Biodesix and Umoja Biopharma occupied their new buildings in the Northwest submarket. Recently completed conversion projects in Boulder also saw additional positive absorption.

‒      Direct vacancy across the greater Denver/Boulder market decreased by a sizable 320 basis points in Q4 2023, ending the year at 8.5%. This reflects a decrease of 40 basis points year-over-year. Direct vacancy in Boulder was up 140 basis points quarter-over-quarter but remained at a still healthy 7.4%.

‒      Notable leasing activity in Q4 2023 included Foresight Diagnostics leasing the newly converted building at 2865 Wilderness Place (25,700 sq. ft.) in Boulder and Atara Biotherapeutics renewing 12,300 sq. ft. at Bioscience 1 in Aurora.

‒      The development pipeline rose to 558,000 sq. ft. in Q4 2023 after conversion work started on several buildings at SteelWave’s Element Research Center campus in Boulder. Of the 97,000 sq. ft. that delivered in the fourth quarter, more than 90% was preleased.

‒      Lab asking rents were largely stable again in Q4 2023. Market-wide, asking rents are averaging roughly $60 per sq. ft. NNN and topping out in the low $70s per sq. ft. in Boulder.

‒      Venture capital funding among Denver/Boulder life sciences companies reached a record high in 2023 of $288 million, which was 8.3% above the previous high in 2021.