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The Life Sciences Tenant Q2 2025

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The life sciences industry continues to experience a growing supply-demand imbalance, as newly delivered lab space outpaces tenant demand. Vacancy rates have surged to record highs across major markets, with many new buildings sitting unleased. Despite stable rents, companies are cutting costs by turning to shared coworking labs, shifting to secondary markets, or downsizing their footprints.

 

Key Takeaways:

  • Weak tenant demand amid continued supply growth has left many new buildings vacant across major markets.
  • Major industry players are investing millions to expand in emerging markets, capitalizing on lower operating costs while retaining access to top-tier talent.
  • National venture capital (VC) funding in life sciences remains steady, standing at $20.8 billion, while several emerging markets are on track to surpass last year’s funding totals.

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