Publication

The Life Sciences Tenant Q1 2025

In the first quarter of 2025, the life sciences market faced continued challenges as it adapted to funding pressures and strategic realignments. Newly imposed tariffs are expected to slow operations and increase strain across the industry, while investors remain cautious amid persistent uncertainty.

 

Key Takeaways:

  • Expected NIH funding cuts could push research institutions to scale back and startups to shut down or slow operations, reducing demand for life sciences space.
  • Companies are addressing drug pricing and access pressures by investing in R&D and acquisitions to lower costs and improve consumer access.
  • Venture capital (VC) funding in life sciences holds steady year over year, reflecting continued caution amid global uncertainty.

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