March 2025 Life Sciences Update

Investment Sales Activity Ticked Up in 2024

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CONTENTS

R&D Annual Sales Volume

• R&D sales volume totaled $7.2 billion in 2024, up 33% YOY. Despite strong deal flow in 2024, the market remains significantly below peak 2021-2022 levels and lags the 10-year annual average. • The number of deals closed in 2024 also rose, totaling 233 — a 32% YOY increase — but still below the 10-year average.

Sales Volume

# of Deals

$25

500

$20

400

• At year-end 2024, the average deal size held steady at $31 million.

• While the R&D/ life sciences sector

represents a fraction of total U.S. property sales, the sector faced similar headwinds. Higher interest rates pushed debt pricing higher, suppressing deal volume. • Looking forward, interest rates are expected to stay elevated in 2025. Deal volume will likely remain restrained given the higher-for longer interest rate environment and the softening fundamentals in the life sciences leasing market.

$15

300

$10

200

Number of Deals

$7.2

Sales Volume, 4-Qtr Rolling ($Billions)

$5.5

$5

100

$0

0

Source: MSCI Real Capital Analytics, Cushman & Wakefield Research; R&D is used as a proxy for life sciences sales of laboratory and cGMP properties.

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Cushman & Wakefield