The life sciences industry faced numerous challenges in 2024, such as geopolitical tensions, a sluggish economy, and high interest rates. However, despite these obstacles, the sector saw an increase in global venture capital and mergers and acquisitions activity. Additionally, the United States experienced record employment growth within the industry.
According to CBRE’s “U.S. Life Sciences Outlook 2025” report , this sector is currently experiencing unprecedented levels of innovation and discovery. Looking ahead to 2025, both CBRE and Cushman & Wakefield predict that funding will continue to flow into the life sciences industry with a potential recovery for commercial real estate on the horizon.
Cushman & Wakefield analysts noted that investor enthusiasm for ongoing advancements in this field has driven capital towards it over recent years due to strong economic conditions. They also anticipate this trend will persist throughout 2025.
CBRE analysts expect continued U.S economic resilience to contribute positively towards revenue growth within the life sciences sector while also highlighting other favorable factors such as improved access to capital markets along with increased demand for laboratory space research facilities . The pharmaceuticals market is expected grow significantly thanks largely due innovations like cell therapy treatments gene therapies clinical trials .
In terms of real estate impact , CBRE reported that sales of lab properties hit their lowest point since over ten years ago during last year (in part because higher interest rates). However they believe macroeconomic trends should improve enough drive more investment sales next year even though there may be some headwinds from new supply coming online early on . Meanwhile Cushman & Wakefield predicts improvement deal activity which could signal start CRE recovery .
Both firms agree construction pipeline has slowed down somewhat giving breathing room but leasing activity likely pick up leading absorption new space being absorbed by companies who are well-capitalized able make longer-term decisions including expanding their footprint increasing headcount according experts at Connect CRE .
