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Life Sciences Update: March 2023

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Accelerated growth in the life sciences sector has translated into double-digit rent growth, single-digit vacancy rates, and strong investment flows in the last ten years.
With the gold-rush sentiment of 2021 largely subdued in 2022, many are asking where the sector is headed. As the sector matures, double-digit growth may ebb and will be replaced by a more muted growth environment. Investment continues to flow into the life sciences sector, and while the peak of 2021 funding and growth may not be replicated in the short term, the sector will continue to grow in the long term.
This Life Sciences Update breaks down the current trends in the life sciences industry by exploring:
  • Market-by-Market Analysis
  • Rising Risk Factors
  • Fundamentals Remain Strong
  • Labor Demand Remained Robust in 2022
  • Funding Fell from Peak Levels
  • Clinical Trial Activity Driving Future Demand
  • Emerging Markets

Life Sciences Market-by-Market Analysis

Select each city on the map below to view an in-depth life sciences market summary.

Several global markets have developing life sciences sectors of note. Some of the characteristics these markets share include a growing number of life sciences companies, government initiatives and support, historical sector performance, investment, R&D activities and employment. Read more about emerging life sciences markets.


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The overall U.S. vacancy rate has ticked up 70 basis points (bps) to 9.2% year-over-year (YoY). Sublease space has also ticked up, rising 60 bps YoY, but remains relatively constrained at 1.6%. 

Annual rent growth was strong across most markets, growing by double digits in nine of the 15 markets tracked. Vacancy rates remain low in most markets, with nine of the 15 markets falling below 10%.

Life sciences job postings grew across all three major markets, as employers continued to seek talent to fill open positions: U.S. up 30% YoY, Canada up 52% YoY and UK up 15% YoY. 

Global life sciences venture capital (VC) funding and initial public offering (IPO) markets experienced a slowdown in 2022. Funding totaled $66.6 billion, down 45% from peak 2021 levels. Read more about Life Sciences Funding in our recent Life Sciences Funding In View article.

Excluding 2021, there were more ongoing trials in 2022 than any other year in the past two decades.  Currently, there are approximately 44,500 active clinical trials among the markets tracked by Cushman & Wakefield. 

Previous Reports

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