H1 2024 U.S. life sciences market overview

The lab/R&D market showed signs of revitalization during the first half of 2024 despite record-high availability and stagnant occupier demand. Most notably, funding into the life sciences sector received a large boost from venture capital investment, public markets, and the U.S. government which is expected to increase leasing activity in the second half of the year and in 2025. Moreover, construction starts for lab buildings came to a near halt, allowing the market time to absorb the newer product, which accounts for most of the lab/R&D availability. 
20 msf

of lab/R&D supply is under construction

After the delivery of 3.3 million square feet (msf) during H1 2024 and project pauses totaling 1.3 msf, active construction now sits at 20.3 msf.

26.4%

of lab/R&D space is available on a direct basis

Driven by a speculative construction projects, sublease market activity, and limited leasing velocity in H1 2024, the total availability rose to an all-time high of 26.4%, which represents 47.5 msf.

-836 ksf

in net absorption occurred during H1 2024

After 10 consecutive years of positive net absorption, the lab/R&D market is on track to break the streak in 2024.

For more information, contact:

  • U.S. Life Science Lead, Market Intelligence | Boston & Philadelphia Manager, Market Intelligence
  • Market Intelligence