In this edition of Cushman & Wakefield’s life sciences market report we cover national trends and dive deep into top global life sciences markets, for an in-depth look at this quickly changing industry.
In the second half of 2024, the life sciences sector saw increased venture capital funding as investors grew more comfortable putting more capital to work. Commercial real estate activity in the life sciences sector was mixed. Leasing activity remained subdued and there was increased vacancy and lower asking rents in some markets. The life sciences capital markets saw increased activity as the overall property sector began to recover. Looking forward, uncertainty around funding and interest rates has increased. 2025 may be a year of significant change in the industry as we keep a close eye on developing trends.
The Life Sciences Update provides market updates for 34 markets in the Americas and Europe. The report covers life sciences venture capital funding, rent and vacancy, labor analytics, clinical trials and more.
REPORT TAKEAWAYS
Leasing Market Fundamentals
- Supply continues to outpace demand; however, a deceleration in the construction pipeline will rebalance supply and demand in the sector.
- Occupiers will have plenty of choices in 2025.
U.S. Capital Markets
- Activity rose in 2025 as the broader commercial real estate (CRE) investment market began to recover.
- Cap rates remain higher as buyers evaluate opportunities in the market.
Life Sciences Sector Trends
- Life sciences companies are embracing artificial intelligence (AI).
- Uncertainty around drug pricing has grown, with potential tariffs adding further pressure on pricing and manufacturing.
- The global Contract Development and Manufacturing Organization (CDMO) sector is likely to be affected as the U.S. government pushes for increased domestic production.
Emerging Markets
- Growth in emerging markets continues to accelerate as they grow their life sciences inventory and offer unique opportunities.
European Markets
- The European life sciences market enters 2025 with greater confidence.
- Improvement in debt markets and venture capital flows should support corporate activity and occupier confidence.
- Momentum is set to pick up with increased investment in late-stage business models and the integration of AI.
Select each city on the map below to view an in-depth life sciences market summary External Link.
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