After a quiet 2019, government leasing came back strong with 780,000 sq. ft. of leases and 68,000 sq. ft. of positive absorption so far this year. The National Institutes of Health was a key driver with more than 500,000 sq. ft. of leases including a 61,000 sq. ft. expansion in Q1.
On the private-sector front, life sciences tenants contributed 251,000 sq. ft. of leases and 43,000 sq. ft. of occupancy gains year-to-date. Of note, Gaithersburg-based Novavax and AstraZeneca have received $1.6 billion and $1.2 billion of federal funding respectively for COVID-19 vaccine development.