March 2025 Life Sciences Update

U.S. Construction Pipeline Contracts Further

02

CONTENTS

Inventory Under Construction

• The U.S. construction pipeline began

declining in the third quarter of 2023 after peaking at 17% of total inventory. By year end 2024, construction activity had slowed to 7.0% of total inventory. • Softening demand for space and a high volume of deliveries expected to deliver vacant have dampened construction activity.

Under Construction

% of Total Inventory (RHS)

40

20%

35

18%

17%

30

16%

16%

25

14%

15%

Millions Square Feet

Percent of Total Inventory

20

12%

12%

15

10%

11%

10%

9%

9%

10

8%

8% 8%

8%

7%

7% 8%

7%

7%

5

6%

0

4%

Q1 2021

Q2 2021

Q3 2021

Q4 2021

Q1 2022

Q2 2022

Q3 2022

Q4 2022

Q1 2023

Q2 2023

Q3 2023

Q4 2023

Q1 2024

Q2 2024

Q3 2024

Q4 2024

Source: Cushman & Wakefield Research

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Cushman & Wakefield