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Life Sciences Update

H1 2025 was dynamic for the life sciences industry

In this edition of Cushman & Wakefield’s life sciences market report External Link, we explore national trends and provide an in-depth analysis of leading global life sciences markets in this rapidly evolving industry. 

AI adoption is revolutionizing drug discovery, boosting efficiency and success rates in clinical trials. However, global uncertainty has slowed leasing activity, with vacancy rates reaching 23.3% across major markets. 

In the U.S., R&D capital markets investment sales rose 63% year-over-year, driven by major hub markets. Europe saw a 22% rise in VC funding and a 5% uptick in M&A deal volume. Meanwhile, the Chinese mainland continues to emerge as a global biopharma leader, with rising R&D investment and breakthroughs in therapeutics and MedTech. 

Looking ahead, the industry faces challenges such as patent expirations, tariff uncertainties and evolving pricing policies. However, opportunities abound in AI-driven innovation, regionalized supply chains and emerging markets.

September 2025 Report

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GLOBAL MARKETS

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

 

INDUSTRY TRENDS

  • Artificial intelligence adoption for drug discovery is gaining momentum, boosting efficiency and success rates in clinical trials. 
  • The pharmaceutical industry faces headwinds, including upcoming patent expirations, U.S. tariff uncertainty and potential U.S. pricing policies. 
  • While the global pharma supply chain is diverse enough to meet worldwide demand, regionalization may be needed to address growth regions effectively. 
  • The growth of GLP-1 use will continue to impact the future of pharma. 
>> Access Industry Trends

GLOBAL OVERVIEW

  • Increased uncertainty has hindered the ability of life sciences companies to plan, leading to slower leasing and a 23.3% vacancy rate across major global life sciences markets. 
  • Life sciences R&D capital markets saw a 42% rise in transaction volume during the first half of 2025. 
  • Global life sciences venture capital funding slowed to $18 billion in the first half of 2025, down 16% year-over-year, while Initial public offerings  fell to $2.3 billion, a 58% YOY decline. 
  • Global merger and acquisition  deal volume totaled $86 billion in the first half, down 23% YOY, despite a few megadeals announced this year.  
>> Access Global Overview

U.S. OVERVIEW

  • Asking rents have softened further, and the overall vacancy rate has reached a new high. Concessions are the new normal. The construction pipeline has contracted and is 63% preleased as it shifts from speculative to build-to-suit. 
  • R&D investment sales totaled $8.6 billion for the four quarters ending Q2 2025, up 63% YOY, with major hub markets driving higher activity. VC and IPO activity slowed YOY as the market continues to face uncertainty from tariffs and emerging policies. 
  • Despite the slowdown, hiring remains strong, and increased labor market slack has made filling open positions easier. 
  • Emerging markets continue to grow, offering cost effective options for both space and labor. 
>> Access United States Overview

EMEA OVERVIEW

  • Macro conditions in Europe may remain uncertain, but improving debt markets and stronger VC flows to life sciences should boost corporate activity and occupier confidence. 
  • With more investment in late-stage business models and the integration of AI to help optimize R&D strategies and lab design, momentum in the market is set to pick up. 
  • In the U.K., the gap between prime quoted and achieved rents has widened as rents for fitted space rise in Oxford and Cambridge. 
  • New supply delivering in the U.K. in 2025 will rebalance supply and demand. The historically tight supply conditions are beginning to ease, as developments that broke ground two years ago reach completion. 
>> Access European Overview

CHINESE MAINLAND OVERVIEW

  • The vibrant consumer landscape on the Chinese mainland is driving demand for health-related products and services, creating fertile ground for the expansion of biotech and MedTech solutions. 
  • The Chinese mainland is now a leading biopharma market, with rising R&D investment driving improvements in medicine and medical device quality. 
  • Breakthroughs in therapeutics and MedTech are opening new markets, reinforcing R&D momentum, and propelling the Chinese mainland's life sciences sector into a new era of global influence. 
>> Access Chinese Mainland Overview
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