Denver/Boulder Life Sciences Figures Q1 2025

‒      Leasing activity slowed in Q1 2025 after two larger tenant expansions were executed in the previous quarter. Rolling four-quarter leasing activity totaled 178,100 sq. ft., a 14.3% decline quarter-over-quarter.

‒      Net absorption reached its highest quarterly total since late 2023 with 58,100 sq. ft., which was already three times greater than 2024’s total.

‒      Higher net absorption pushed the market’s direct vacancy down 50 basis points to 10.9%. Year-over-year, direct vacancy was up by 130 basis points.  

‒      The construction pipeline was unchanged for a second straight quarter, with no new completions or starts keeping the space under construction stable at 396,600 sq. ft.

‒      The average asking rent for laboratory space in the Denver/Boulder metro remained largely stable again this quarter at approximately $60.00 per sq. ft. NNN.

‒      The recent uptick in new tenant requirements that coincided with renewed market optimism amid the rebound in VC funding is facing new, heightened uncertainty. As a result, local VC funding’s recent spike will likely moderate, and some expansion plans may be put on hold.