Intelligent Investment
U.S. Life Sciences Outlook 2025
Demand Expected to Improve as Oversupply Persists
febrero 6, 2025 30 Minute Read
Introductory Note: Early Signs of a Life Sciences Upcycle
This 2025 U.S. Life Sciences Outlook provides investors and occupiers alike with valuable insights to where the market is headed this year.
The life sciences industry battled through headwinds again in 2024. The market was characterized by increased leasing activity among emerging companies and less activity among multinationals due to change management and consolidation.
While the regulatory conditions around mergers and acquisitions remained tough, the market for initial public offerings was still relatively idle for most of the year.
Despite those circumstances, venture financing and secondary offerings created greater financial flexibility for select companies.
The year ahead likely will see further growth in investment and headcount, as all stakeholders in the life sciences industry strive to advance the record levels of innovation seen during the prior bull run.
We hope you will find our 2025 Outlook report helpful for your planning. For more information on CBRE’s Life Sciences Group, please visit www.cbre.com/lifesciences.
Matt Gardner
CBRE Life Sciences Advisory Leader
Executive Summary
- Lab/R&D leasing activity trended higher in 2024 (e.g., a 41% year-over-year increase in Q3) and demand should continue to improve in 2025.
- Expectations of stronger economic growth, more accommodative capital markets and record life sciences employment should underpin greater demand for space in 2025.
- Annual venture capital funding increased by 10% year-over-year in Q3 2024 and was 10% higher than its pre-pandemic peak in 2019, possibly signaling better 2025 IPO activity.
- U.S life sciences employment hit a record high in late 2024 and more job growth is expected in 2025.
- The life sciences industry remains in a period of unprecedented innovation and discovery. FDA novel drug approvals in 2024 were the sixth highest annual total on record.
- The oversupply of life sciences lab/R&D space will persist, with 16.6 million sq. ft. under construction as of Q3 2024. While the overall vacancy rate is expected to increase, the construction pipeline will significantly ease by year-end.
Insights from the Life Sciences Roundtable Q1 2025
A panel of CBRE experts shared key findings from the U.S. Life Sciences Outlook and U.S. Life Sciences Quarterly Figures and discussed the investment environment for the sector, including results from the U.S. Investor Intentions Survey.
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