Small Transactions - the pacesetters in the Life Sciences Market
The 2nd Quarter of 2018 was busy with several smaller transactions in the market. There were six transactions completed ranging from 2,500 to 5,300 square feet. This new demand snapped up any existing lab space that came on the market in that size range, as well as some space under construction at 704 Quince Orchard Road. Additionally, Lonza completed its first venture into the Montgomery County market in quite a while with a lease at 9900 Medical Center Drive. There was one property with lab space that came available in the 2nd quarter of 2018; 9600 Medical Center Drive will provide approximately 29,000 square feet worth of lab and office as NantOmics transitions operations to the west coast and looks to sublease its facilities.
Historically, activity with early-stage companies has been a positive bellwether for the market as it signals new initiatives and potential expansion in the region. This last round of demand and transactions will likely translate into new growth in the quarters to come.
In terms of future supply, there are only a few spaces that have the potential to be available in the near future. However, some landlords who are not traditionally providers of lab space are responding to the constrained supply to provide conversion options.
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