- Lab and R&D leasing activity is recovering unevenly across major U.S. life sciences markets, with 2025 volumes in every hub still below their 2015–2019 pre-COVID averages. Most markets experienced a brief surge in activity from 2020–2022 — driven by elevated biotech funding and pandemic-related research demand — but that momentum has since moderated, resulting in a slower and more fragmented recovery phase for the sector.
- Raleigh-Durham and Boston were the most resilient of the leading markets, with 2025 leasing activity trailing their pre-pandemic norms by just 2.2% and 8.7%. Their performance reflects strong institutional ecosystems, consistent venture capital inflows, and a deep tenant base anchored by emerging biotech firms and established pharmaceutical companies.
- The Tri-State and San Diego markets recorded the most pronounced slowdown in 2025, posting the lowest leasing volumes relative to their historical averages. Elevated supply, more cautious expansion decisions, and a recalibration of space needs following the rapid growth cycle earlier in the decade all contributed to the softer demand environment.
- Looking ahead, the gap between current leasing activity and pre-COVID averages suggests many life sciences markets are entering a gradual rebalancing phase, where limited new construction, improving biotech funding conditions, and steady company formation help demand slowly absorb excess supply.
An uneven reset: U.S. life sciences lab/R&D leasing lagged pre-COVID norms in 2025
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Tucker White
U.S. Office and Life Sciences Lead, Market Intelligence
Boston, Massachusetts, Pennsylvania, New York
Research, Market Intelligence
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