March 2025 Life Sciences Update

Vacancy Rates Have Risen Across Most Markets

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CONTENTS

• The average vacancy rate across the 16 tracked markets reached 20.5% in the fourth quarter of 2024, rising 250 basis points (bps) from the second quarter of 2024. Softer demand and a wave of vacant new construction completions have pushed vacancy rates higher in most markets. • The vacancy rate ticked down YOY in four markets: Leiden, Netherlands (-190 bps), New Jersey (-160 bps), Philadelphia (-31 bps), and Los Angeles-Orange County (-14 bps). • Total net absorption in the U.S. remained negative for the second consecutive year. Still, four of the 12 U.S. markets — Boston, Chicago, Los Angeles-Orange County and New Jersey — posted positive absorption in 2024. • The total market vacancy rate has increased due to the influx of vacant sublease space and some new construction projects delivering vacant. This trend should start winding down in 2025 as the life sciences construction pipeline contracts and occupiers absorb more available space.

Overall Vacancy Rate by Market

Q4 2024

Q4 2023

Average Q4 2024

42.0%

40%

35%

31.8%

30.3%

30%

26.0%

23.6%

25%

20.5%

20.4% 20.4%

19.4%

20%

15.5% 15.5%

14.0%

15%

8.2%

10%

4.8% 4.5% 3.2%

5%

1.9%

0%

Source: Cushman & Wakefield Research

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Cushman & Wakefield