Life Sciences Funding in View: 2025 Outlook

U.S. NIH Funding

Non-Profit For Profit

› For the first time in nearly 10 years, annual National Institutes of Health (NIH) award totals decreased. A flat YOY budget constrained resources, leading to $35.1 billion in grant awards, an 8% drop from 2023. For-profit funding experienced the steepest decline, falling to $2.8 billion (-12% YOY), while non-profit funding totaled $32.3 billion (-7% YOY). › The NIH’s proposed 2025 budget of $50.1 billion represents a marginal increase over 2024’s budget of $49.9 billion, suggesting that total awards for 2025 will mirror 2024 levels. CRE VIEW : The NIH is an important source of funding for universities and institutes, which occasionally spin off accelerators or incubators into the private sector. Subdued award levels in 2025 indicate that CRE activity from these entities is likely to resemble 2024. However, private-public partnerships, which have historically driven significant space absorption in some markets, may increase in 2025 if private companies seek more opportunities in this space.

$40

$3.2

$3.0

$35

$3.3

$2.8

$2.8

$30

$2.3

$1.8

$25

$1.8

$1.4

$2.1 $1.7 $0.9 $1.5

$1.3

$1.9 $1.9 $1.8 $1.9

$1.9

$1.5 $0.9

$20

$34 $35

$Billions

$32

$32 $33

$15

$29

$26

$23 $24

$22 $22 $23 $22

$21 $21 $22

$21 $21 $21 $21 $21

$10

$5

$0

Source: National Institutes of Health

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LIFE SCIENCES JANUARY 2025 LIFE SCIENCES JANUARY 2025