The Bottom of the Pyramid: Why Small Life Science Tenants Represent Big Demand
Labspace Directory Co-Founder David Klein joins The Registry to discuss one of the
most overlooked segments of the life science real estate market: small lab tenants.
While headlines surrounding life science real estate often focus on large leases, major developments, and overall vacancy rates, those numbers don’t always tell the full story - particularly for early-stage and growing life science companies searching for smaller laboratory spaces.
David Klein, Co-Founder of Labspace Directory and EVP & Managing Principal at Lee & Associates San Francisco, recently joined host Vladimir Bosanac and co-host David Arscott, CEO & Co-Founder of Baycrest Capital, for a conversation about what Klein calls the “demand pyramid” in life science real estate.
A Different View of Life Science Real Estate Demand
During the conversation, Klein discusses a segment of the market that can be easy to overlook: life science companies seeking less than 10,000 square feet of laboratory space.
According to Klein, these smaller tenants represent approximately 40% of life science demand, yet the availability of appropriately sized lab space remains extremely limited. While broader life science real estate vacancy may hover near 29%, Klein notes that vacancy for sub-10,000-square-foot lab spaces can range from just 0.1% to 2.2%.
That disconnect creates a very different real estate environment for startups and smaller biotech companies than broader market statistics might suggest.
It’s also a major reason Labspace Directory was created: to make it easier for life science companies to identify smaller, specialized lab spaces and connect with the brokers and property owners representing them.
More From the Episode
The discussion also explores the current state of the multifamily and industrial real estate markets, rent control and housing policy, energy demand associated with data centers, and broader commercial real estate trends.
Listen to “The Bottom of the Pyramid: Small Tenants, Big Demand” to hear the full conversation and David Klein’s perspective on the underserved small-tenant segment of the life science real estate market on Apple Podcasts or Spotify.