March 2025 Life Sciences Update

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Default Section	1
Slide 1	1
Slide 2	2
Slide 3: Key Takeaways	3
Leasing Market Fundamentals	4
Slide 4	4
Slide 5: Rent Growth Slowed to 3%	5
Slide 6: U.S. Life Sciences Rent Premium	6
Slide 7: Vacancy Rates Have Risen Across Most Markets	7
Slide 8: U.S. Vacant Sublease Space Has Increased	8
Slide 9: Inventory Growth Has Decelerated	9
Slide 10: U.S. Construction Pipeline Contracts Further	10
Slide 11: Nearly 15 MSF Set To Deliver in the U.S. by 2026, With 44% Pre-leased	11
Slide 12: Venture Capital Funding and Leasing Activity Are Closely Aligned	12
Slide 13: Improved Alignment of Inventory and Job Growth	13
Capital Markets	14
Slide 14	14
Slide 15: Investment Sales Activity Ticked Up in 2024	15
Slide 16: Pricing Trends Lower	16
Slide 17: Activity Increased in Metros Yet Remains Muted	17
Slide 18: Total Returns Have Declined Across Most Property Types	18
Labor	19
Slide 19	19
Slide 20: Employment Growth Drives Construction Activity	20
Slide 21: Hub and Secondary Markets Have the Largest Employment Base	21
Slide 22: Increased Slack in U.S. Life Sciences Labor Market	22
Slide 23: Localized Challenges Remain	23
Slide 24: In-Demand Occupations Remain Difficult to Fill	24
Clinical Trials and Approvals	25
Slide 25	25
Slide 26: The Pipeline of Active Clinical Trials Remains Robust Globally	26
Slide 27: Novel Drug and Biological Approvals Lagged in 2024	27
Slide 28: Site Selection Is Key to Successful Clinical Trials	28
Global Funding	29
Slide 29	29
Slide 30: Uptick in 2024 Global Funding Levels	30
Slide 31: NIH Funding Slowed in 2024 and Is Expected To Drop Further with Budget Cuts	31
Slide 32: Multiple Funding Sources Drive the Growth of Life Sciences	32
Slide 33: Biotech Gave Back Gains at Year-end 2024	33
Industry Trends to Watch	34
Slide 34	34
Slide 35: How is the Industry Preparing for AI?	35
Slide 36: Will Potential Tariffs Impact Drug Costs?	36
Slide 37: Are Manufacturing Changes on the Horizon?	37
Slide 38: Will M&A Activity Rebound in 2025?	38
Emerging Markets	39
Slide 39	39
Slide 40: What Makes an Emerging Market?	40
Slide 41: What Makes an Emerging Market?	41
Slide 42: What Makes an Emerging Market?	42
Slide 43: What Makes an Emerging Market?	43
Slide 44: What Makes an Emerging Market?	44
Europe	45
Slide 45	45
Slide 46	46
Slide 47: The Funding Market Rally Gathers Pace	47
Slide 48: VC Funding by Market	48
Slide 49: Real Estate Values Stabilizing	49
Slide 50	50
Slide 51: Life Sciences Compared	51
Slide 52: Performance by Market	52
Slide 53: Trends ahead	53
Slide 54: Appendix: Glossary of Terms and Data Definitions	54
Slide 55	55
Slide 56	56
Slide 57: Boston	57
Slide 58: Chicago	58
Slide 59: Denver	59
Slide 60: Los Angeles & Orange County	60
Slide 61: New Jersey	61
Slide 62: New York	62
Slide 63: Philadelphia	63
Slide 64: Raleigh-Durham	64
Slide 65: San Diego	65
Slide 66: San Francisco Bay Area	66
Slide 67: Seattle	67
Slide 68: Suburban Maryland (I-270 Corridor)	68
Slide 69: Montreal	69
Slide 70: Toronto	70
Slide 71: Vancouver	71
Slide 72	72
Slide 73: Atlanta	73
Slide 74: Austin	74
Slide 75: Dallas-Fort Worth	75
Slide 76: Houston	76
Slide 77: Indianapolis	77
Slide 78: Phoenix	78
Slide 79: Salt Lake City	79
Slide 80: Costa Rica	80
Slide 81	81
Slide 82: Belgium	82
Slide 83: France: Paris	83
Slide 84: Germany: Berlin	84
Slide 85: Germany: Munich	85
Slide 86: Germany: Rhine-Neckar Region	86
Slide 87: Italy: Milan	87
Slide 88: Netherlands: Leiden	88
Slide 89: Spain: Barcelona	89
Slide 90: UK: Cambridge	90
Slide 91: UK: London	91
Slide 92: UK: Oxford	92
Slide 93	93

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