March 2025 Life Sciences Update

Total Returns Have Declined Across Most Property Types

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CONTENTS

Annualized Total Returns

Annualized Income Returns

• Commercial real estate total returns have declined over the last three years, according to data from the National Council of Real Estate Investment Fiduciaries (NCREIF), which tracks privately held properties. • Returns for life sciences subtypes turned negative as well despite existing rent premiums. The drop in total returns is primarily due to falling valuations, as the appreciation portion of returns turned negative — sometimes by double digits. • Income returns for life sciences properties have remained healthy over the last three years.

Industrial

Office

Industrial

Office

Industrial: Life Sciences

Office: Life Sciences

Industrial: Life Sciences

Office: Life Sciences

Total Index

Total Index

15%

7%

10%

6%

5%

• Industrial life sciences properties posted relatively flat income returns.

5%

Office life sciences properties experienced growth from 4.1% five years ago to 4.8% in 2024, on par with the total NCREIF index’s one -year return for 2024.

•

0%

4%

-5%

3%

-10%

-15%

2%

1 Year

2Year

3 Year

4 Year

5 Year

1 Year

2Year

3 Year

4 Year

5 Year

Source: NCREIF, Cushman & Wakefield Research

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Cushman & Wakefield