Craig Tomlinson tells GlobeSt to expect slowdown in life science sector through mid-year
Senior Vice President
TULSA, OKLAHOMA (January 30, 2023) - Craig Tomlinson, senior vice president at Northmarq, recently spoke with GlobeSt.com in a feature story focused on the healthy normalization of the life science sector after explosive growth in recent years. The past two years set a high bar for the sector, and after such a run a cooling period can be expected.
Tomlinson told GlobeSt.com that after three high-profile sales (exceeding $250 million) of life science properties in 3Q 2022, RCM data reported none in the last quarter. “These are very high basis properties, typically +$1,000 per foot,” he said. “That, plus the lack of sale comps, explained lenders’ reluctance to fund such transactions.
“The slowdown is expected to continue through mid-year, with the exceptional sale-leaseback possible. Those are typically higher yield as compared to third-party transactions.”
Other topics covered include:
- Life Science Relies on ‘Different’ Financing Sources
- Pandemic-Caused Therapies Drove Growth
- Leasing Activity Dropped 62%
- After the Big Run, Normalization is ‘Healthy’
- Boston is Still a Leader