March 2025 Life Sciences Update

Trends ahead

CONTENTS

Occupier Demand

Corporate Trends

Investor Demand

Outlook

Tariffs, regulation and nearshoring could influence demand patterns, but activity will rise as new treatment areas emerge and clinical trials accelerate, driving lab, testing and production demand. AI will further increase the pace of development and place greater emphasis on modern properties that support new ways of working and feature embedded technology.

Expect a mix of consolidation, M&A and partnerships in the short term, leading to changing patterns of supply and demand. Partnering and the search for new innovative startups will reinforce existing clusters, while the search for supply chain resilience and resulting

Investor appetite for the sector remains strong, though there is some caution over pricing and timing. This nervousness should ease as funding and

• Occupier confidence is improving but remains selective. • New supply is expected to boost activity in 2025. • The UK will lead, with European clusters becoming more active where the right supply exists. • Rental growth will slow but remain above inflation. • Investment pricing is now at a low. • Investment volumes are expected to rise in the first half of 2025.

occupier confidence improve. We expect increased demand for passive investment

partners to support new developments in a market with higher finance costs and construction expenses.

reshoring could shift focus to new areas.

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Cushman & Wakefield