2024 Life Sciences Real Estate Perspective and Cluster Analysis

Biopharma and medtech markets advance toward equilibrium

Signs continue to point toward long-term growth for life sciences in the U.S. and across the globe

We are living in a time of extraordinary scientific progress. Biotechnology patent innovation was 22% higher in 2023 than it was a decade prior, driving company creation, while Evaluate Pharma forecasts worldwide pharma sales will be over 80% higher in 2030 than they were in 2023, driven in large part by a doubling of revenue generated by biologics. While industry challenges persist in the short term, signs continue to point toward long-term growth for life sciences in the U.S. and across the globe.

As the industry returns to equilibrium and the life sciences evolves, so does our annual industry report. This year’s research perspective explores familiar territory and paves a future landscape. Adding to previous cluster models for the biopharma and medtech sectors are rankings for two new focus areas: talent and AI.

How can real estate and facilities advance science, technology and innovation? Which markets are home to the best talent pools? What macro forces are driving decision-making? We answer these questions and more for life sciences companies, investors and developers. This year, our report delineates 10 critical observations and answer core questions. The central question remains is when, not if, the sector will begin its recovery, returning to the robust growth seen over the past two decades.

What questions does the 2024 Cluster Analysis answer?

What are the current dynamics in the U.S. lab market?

A 6-12 month supply super cycle followed by a period with limited new supply and repurposing of older assets will boost recovery

In the past year, the pre-existing supply-demand imbalance has grown more acute in most major lab markets. At the heart of today's market pressure sits lackluster demand and robust subleasing. With the addition of over 3 million s.f. of sublease space, the overall national lab availability rate has pushed to 30%.